4.2 - Replacement Decision
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Practice Questions
Test your understanding with targeted questions
What is the first phase in the equipment life cycle?
💡 Hint: Think about the starting point of using any equipment.
Define downtime in relation to equipment.
💡 Hint: Consider the time not spent working effectively.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the economic useful life of equipment?
💡 Hint: Focus on when costs versus profits are optimized.
True or False: Downtime is a critical factor that does not affect equipment costs.
💡 Hint: Think about what happens in projects when equipment isn't working.
1 more question available
Challenge Problems
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A construction company has a bulldozer that's 10 years old. It's in a market where bulldozers are often upgraded every 5 years. If the repair costs each year are escalating and last year reached 40% of its original purchase price, analyze the decision to keep vs. replace.
💡 Hint: Evaluate repair costs versus productivity levels.
A firm is using an old crane that frequently delays projects because of downtime. Calculate the total cost of downtime over six months if every month it leads to a production delay that costs the firm $2000.
💡 Hint: Consider how much new equipment could save in project delivery times.
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