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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the annual operating cost of the Challenger?
💡 Hint: Refer to the section where both costs are compared.
Question 2
Easy
Define salvage value.
💡 Hint: Think about how salvage value is used in calculations.
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 Defender?
- ₹90,000
- ₹1,35,000
- ₹6,00,000
💡 Hint: This cost is explicitly mentioned in the initial comparison.
Question 2
True or False: Any initial purchase costs should be included in the replacement analysis.
- True
- False
💡 Hint: Think about what sunk costs mean when making financial decisions.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
If the Defender maintained its operating cost but increased its salvage value to ₹7,00,000, how would that affect the EAC in comparison to the Challenger?
💡 Hint: Check how salvage values directly reduce final costs.
Question 2
Create a scenario where both machines are equally viable, and explain the decision-making process.
💡 Hint: Consider all operational aspects and not just cost.
Challenge and get performance evaluation