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Engineering Economy, 5/e

Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso

Replacement and Retentions Decisions

Matching Quiz

Select the correct answers on the left to fill in the blanks on the right. There are more answers than questions, therefore, some of the items on the right will remain unused. When you have completed the quiz, click the SUBMIT button at the bottom.


1				When replacement is conducted, one of the assets under consideration is __________________.


2				In a replacement analysis, the presently-owned asset is usually known as the _________________.


3				In a replacement analysis, irrelevant past costs are known as ______________.


4				In the opportunity cost or conventional approach, the defender's 'first cost' is considered to be its _______________.


5				The usage time that will result in an asset's lowest equivalent annual cost is known as the asset's _________________.


6				Replacement analysis over a specified study period with several options for the defender's remaining life requires economic comparison of ____________.


7				Year-by-year cost estimates of the costs to own and operate an asset are called _________________.


8				In an economic service life (ESL) analysis, the capital recovery term _______ with each year of ownership.

Answer choices for questions 1 through 8

A)	Marginal costs
B)	Non-profitable
C)	Disappears
D)	Equivalent annual costs
E)	Defender
F)	Decreases
G)	Increases
H)	Replacement life
I)	Economic service life
J)	Presently owned
K)	Current market value
L)	Equal service alternatives
M)	Sunk costs
N)	All succession options
O)	Actual cost estimates
P)	Alternate
Q)	Present worth

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