State what is meant by the cash flow approach and list two of its limitations in a replacement study.
What will be an ideal response?
The cash flow approach subtracts the salvage value of the defender from the first cost of the challenger and then calculates the AW of D and C . This is not a good procedure for the following reasons: (1) It violates the equal service requirement if the remaining life of the defender is not equal to the life of the challenger; and, (2) It yields an incorrect value for the annual cost of the challenger (lower than the true value), which could lead to incorrect capital recovery calculations.
You might also like to view...
If a crane or load comes in contact with power lines, the crane operator should _____.
a. stay in the cab of the crane if possible b. exit the crane very slowly and cautiously c. exit the crane as quickly as possible d. activate the boom guard
____ is the tendency of all the studs to move, as in a parallelogram, allowing the wall to collapse to the side.
A. Triangulation B. Bracing C. Sheathing D. Wracking
What is the chemical structure of acrylic powder?
What will be an ideal response?
Which of these statements is true regarding apprenticeships?
A) The shop often provides tuition assistance B) The apprentice gains on the job training while in school C) The apprentice works during the day and attends classes in the evening D) All of these