7.2 - Reference Textbooks
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Practice Questions
Test your understanding with targeted questions
What does EAC stand for?
💡 Hint: The acronym you use when discussing annual costs.
Name the two types of equipment discussed.
💡 Hint: One is what you currently have.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does EAC stand for?
💡 Hint: Think about annual costs related to equipment.
True or False: Sunk costs should be considered in replacement analysis.
💡 Hint: Remember what has already been spent.
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Challenge Problems
Push your limits with advanced challenges
Consider an equipment with an initial cost of 30,00,000 and a salvage value of 10,00,000 after 5 years with a 10% interest rate. Discuss the equivalency of costs if operating costs are projected at 2,00,000 per year.
💡 Hint: Understand the impact of costs on long-term ownership.
Given the following information, analyze which equipment to retain: Defender EAC is 650,000, Challenger EAC is 610,000, but Challenger has higher initial repair costs. Discuss implications.
💡 Hint: Consider both short term and long term costs.
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Reference links
Supplementary resources to enhance your learning experience.