Practice Cost Variation with Age of Equipment - 1.8 | 19. Equipment Life and Replacement Analysis (Part 3) | Construction Engineering & Management - Vol 1
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Knowledge

1.8 - Cost Variation with Age of Equipment

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What are the two main types of costs associated with construction equipment?

💡 Hint: Think of recurring expenses throughout the equipment's life.

Question 2

Easy

What does economic life refer to?

💡 Hint: Consider when costs start rising.

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 happens to operating costs as equipment ages?

  • Decrease
  • Increase
  • Remain Constant

💡 Hint: Think about wear and tear over time.

Question 2

The economic life is defined as the point where total costs are at their...?

  • Highest
  • Lowest

💡 Hint: Consider when it might be most efficient to replace equipment.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Consider a company that has two excavators. One is 5 years old with increasing maintenance costs, and another just purchased. Analyze the potential savings if the older excavator is replaced this year instead of next.

💡 Hint: Break down the costs year by year for clarity.

Question 2

You manage equipment for a construction firm. If you know that the operational cost for each year increases by 12%, and maintenance starts at $15,000 for a new machine, what would be the average annual cost over a 10-year span if the economic life is reached?

💡 Hint: Apply the formula for geometric sums!

Challenge and get performance evaluation