9 - Estimation of Economic Life
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Practice Questions
Test your understanding with targeted questions
Define economic useful life in your own words.
💡 Hint: Think about the profit to be made during a machine's lifespan.
What is a defender in equipment management?
💡 Hint: Is it the old one or new one?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the economic useful life of a piece of equipment?
💡 Hint: What costs are most important to a business?
True or False: All equipment should be used until it breaks down.
💡 Hint: Think about maintenance costs.
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Challenge Problems
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A construction company has a bulldozer that is 5 years old. Increased breakdowns are leading to downtime of 20%. Calculate the economic life based on the given productivity and repair costs, considering a maximum acceptable downtime of 10%.
💡 Hint: Look at the costs associated with repairs versus the productivity loss.
Your team is assessing a fleet of excavators, and you estimate that their operating costs increase as they age. Create an ideal plan for tracking their performance over time and determining the right replacement time.
💡 Hint: Consider what key performance indicators would indicate the need for replacement.
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