Practice Irrelevant Initial Estimates - 2.1 | 21. Introduction to Defender and Challenger Equipment | Construction Engineering & Management - Vol 1
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Knowledge

2.1 - Irrelevant Initial Estimates

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is a defender in the context of this chapter?

💡 Hint: Think about which machine is currently in use.

Question 2

Easy

Why should sunk costs be ignored in replacement analysis?

💡 Hint: Consider the definition of sunk costs.

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 primary focus of replacement analysis?

  • Initial purchase price
  • Current market value
  • Historical costs

💡 Hint: Which value reflects the current worth of the equipment?

Question 2

True or False: Sunk costs should be considered in making replacement decisions.

  • True
  • False

💡 Hint: Remember this specific definition.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Analyze a scenario where a construction company continues to use an old piece of equipment disregarding relevant future costs due to attachment to original investment. What are the potential implications?

💡 Hint: Consider both current operation costs and potential advancements offered by new equipment.

Question 2

Design a replacement strategy that includes both defenders and challengers under varying operating costs and current market conditions. How would you approach this problem?

💡 Hint: Think about current operating costs in relation to upgraded technology gains.

Challenge and get performance evaluation