Practice Operating and Maintenance Costs Comparison - 1.1 | 21. Introduction to Defender and Challenger Equipment | Construction Engineering & Management - Vol 1
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1.1 - Operating and Maintenance Costs Comparison

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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 for the challenger?

💡 Hint: Look for the cost mentioned for the challenger.

Question 2

Easy

Define sunk costs in your own words.

💡 Hint: Think about money spent that you can't get back.

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 of the defender?

  • ₹90,000
  • ₹1,35,000
  • ₹12,00,000

💡 Hint: Look at the costs for each machine mentioned.

Question 2

True or False: Sunk costs should influence ongoing investment decisions.

  • True
  • False

💡 Hint: Focus on why old costs aren't relevant.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

You are considering the defender and the challenger for a construction project. If you stick with the defender, the annual costs total ₹6,30,270. If you switch to the challenger, the annual costs are ₹6,18,890. How much would you save annually?

💡 Hint: Calculate the difference between the defender's and challenger's annual costs.

Question 2

If the current market value of the defender drastically drops, making its salvage value negligible, how would this affect your decision? Discuss the implications.

💡 Hint: Evaluate how market conditions and residual values play into overall costs and choices.

Challenge and get performance evaluation