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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the operational cost of the Defender?
💡 Hint: Refer to the section where the operating costs were introduced.
Question 2
Easy
Define salvage value.
💡 Hint: Think about how equipment can still have some value after it is no longer used.
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 is the operating cost of the Challenger?
- INR 90,000
- INR 1,00,000
- INR 80,000
💡 Hint: Look at how costs were mentioned for both machines.
Question 2
True or False: Sunk costs should be considered in replacement decisions.
- True
- False
💡 Hint: Remember the definition and implications of sunk costs.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Analyze how a sudden increase in maintenance costs for the Defender (to INR 2,00,000 per year) would affect the decision-making process compared to Challenger.
💡 Hint: Utilize the updated operating cost in your calculation.
Question 2
Determine how inflation might shift the salvage values over a 5-year period for both equipment, leading you to propose a different financial strategy.
💡 Hint: Consider using a percentage increase for annual salvage values.
Challenge and get performance evaluation