Practice Parameters for Replacement Analysis - 2 | 16. Economic Life of a Machine | Construction Engineering & Management - Vol 1
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge

2 - Parameters for Replacement Analysis

Enroll to start learning

You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is economic life in terms of machinery?

💡 Hint: Think about the time frame in which holding costs are minimized.

Question 2

Easy

What happens to costs after the economic life?

💡 Hint: Consider factors leading to additional expenses.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does economic life refer to?

  • The maximum useful life of a machine
  • The period with minimal costs
  • The time until complete breakdown

💡 Hint: Consider the cost-effectiveness aspect.

Question 2

True or False: Costs significantly decrease as a machine ages.

  • True
  • False

💡 Hint: Think about the relationship between age and cost in machinery.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

You have a machine that was purchased for ₹50,00,000, with expected depreciation calculated at a rate of 2,00,000 per year. If inflation increases replacement costs by 5% annually, calculate the projected cost of replacement in 5 years.

💡 Hint: Apply the compounding effect of inflation to the initial cost.

Question 2

Analyze the opportunity cost of maintaining an older machine versus purchasing a new model. Consider aspects such as operational efficiency and capital investment.

💡 Hint: Think broadly about benefits and potential revenue loss.

Challenge and get performance evaluation