3 - Outline of the Lecture
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Practice Questions
Test your understanding with targeted questions
Define economic useful life.
💡 Hint: Think about what makes operational costs lower.
What do we call the current machine that may be replaced?
💡 Hint: It's the opposite of challenger.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the economic useful life?
💡 Hint: Focus on cost management.
True or False: Downtime costs do not affect project profitability.
💡 Hint: Consider what happens when machines are out of service.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
A construction company used a bulldozer that costs $10,000 a year in maintenance and operational costs. A new bulldozer costs $20,000 upfront but only $2,000 annually to maintain. Determine the break-even point when to replace the old bulldozer.
💡 Hint: Calculate how much total costs would be over time.
Given a piece of construction equipment has been less productive over three years, document how to evaluate whether to keep holding it or replace it. Include factors to analyze.
💡 Hint: Think about cumulative losses vs. new opportunities.
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Reference links
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