Practice Next Lecture Preview - 7.3 | 21. Introduction to Defender and Challenger Equipment | Construction Engineering & Management - Vol 1
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7.3 - Next Lecture Preview

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the definition of a defender in terms of replacement analysis?

💡 Hint: Recall which term refers to your existing machinery.

Question 2

Easy

Explain what a sunk cost is.

💡 Hint: Think about old expenses and decision making.

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 considered when doing a replacement analysis?

  • Only initial costs
  • Current market values and ongoing costs
  • Sunk costs

💡 Hint: Focus on what matters for today, not yesterday.

Question 2

Is it acceptable to include sunk costs in replacement analysis?

  • True
  • False

💡 Hint: Think about costs you cannot recover.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company has a defender with an annual operating cost of 1,35,000 and a remaining life of 5 years. It can be sold for 6,00,000. If a challenger has an operating cost of 90,000 and costs 27,50,000, calculate the equivalent annual costs and recommend a course of action.

💡 Hint: Remember to apply the right formulas for CRF and SFF in your calculations.

Question 2

Discuss a situation where retaining a defender might be favorable despite its costs, ensuring to quantify potential benefits.

💡 Hint: Explore qualitative benefits that factor into decision-making.

Challenge and get performance evaluation