Practice Objective of Analysis - 1.3 | 21. Introduction to Defender and Challenger Equipment | Construction Engineering & Management - Vol 1
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1.3 - Objective of Analysis

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define operating costs in your own words.

💡 Hint: Think about the regular expenses like repairs and utilities.

Question 2

Easy

What is the salvage value?

💡 Hint: Consider what the equipment can be sold for after use.

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 reason to consider operating costs?

  • They influence salvage value
  • They help compare different equipment
  • They are fixed costs

💡 Hint: Think about the factors that significantly impact long-term expenditures.

Question 2

True or False: Sunk costs should affect your decision about whether to replace equipment.

  • True
  • False

💡 Hint: Reflect on financial decision strategies.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Assuming operating costs and salvage values change, how would you recalculate the EAC for both the defender and challenger? Consider a rise in operational expenses for the defender to 1,50,000.

💡 Hint: Use similar calculations for EAC with varied inputs.

Question 2

Create a scenario where the salvage value of the challenger decreases due to market factors. Discuss how this impacts the decision to replace the defender.

💡 Hint: Reflect on how decision-making could be revised with new data.

Challenge and get performance evaluation