Practice Information About the Defender - 2 | 21. Introduction to Defender and Challenger Equipment | Construction Engineering & Management - Vol 1
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Knowledge

2 - Information About the Defender

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the annual operating cost of the defender?

💡 Hint: Refer to the section discussing the costs associated with the defender.

Question 2

Easy

What does sunk cost mean?

💡 Hint: Think about costs that you've spent money on that don't affect future decisions.

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 annual operating cost for the defender?

  • ₹90,000
  • ₹1,35,000
  • ₹6,00,000

💡 Hint: Refer to the costs section discussing the defender's financial figures.

Question 2

Is the current trading value of the equipment relevant to replacement analysis? (True/False)

  • True
  • False

💡 Hint: Think about what decides the future financial implications of holding equipment.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Calculate the equivalent annual cost of the defender given the following parameters: initial cost = ₹22,50,000, annual operating costs = ₹1,35,000, salvage value after 5 years = ₹6,00,000, interest rate = 10%.

💡 Hint: Use the uniform series capital recovery factor and the sinking fund factor for calculations.

Question 2

Discuss how sunk costs could impact decision-making in a way that could lead to losses.

💡 Hint: Reflect on emotional vs. rational decision-making in business.

Challenge and get performance evaluation