Practice Physical Life (7.1) - Equipment Life and Replacement Analysis (Part-1)
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Physical Life

Practice - Physical Life

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Learning

Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What are the phases of equipment life?

💡 Hint: Think about what happens from the moment you buy a machine until you no longer use it.

Question 2 Easy

Define defender and challenger.

💡 Hint: Think about what terms are used when discussing current vs potential equipment.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is the economic useful life of a machine?

The period of minimum costs.
The period when equipment can work.
The time before a machine breaks down.

💡 Hint: Think about cost issues related to maintenance.

Question 2

True or False: The defender is always the new equipment.

True
False

💡 Hint: Reflect on which is being used versus which is waiting for replacement.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Consider a mid-sized construction company that has a crucial excavator aging at 10 years. Its maintenance costs begin rising past 30% of its value. What should the company evaluate to determine if it should replace the excavator?

💡 Hint: Factor in the diminishing returns from the old machine versus the net benefits of the new one.

Challenge 2 Hard

An equipment manager notices his older model truck spends more time in the shop than on-site. What metrics should he consider to justify its replacement?

💡 Hint: Evaluate all costs associated with downtime and impacts on project deadlines.

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