Practice Insurance Costs (2.1) - Cost of Investment - Construction Engineering & Management

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9 questions

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6 sample questions

Question 1.
What is investment cost?
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Think of loans or opportunity cost.
Question 2.
How is insurance cost usually calculated?
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Consider the type of equipment!
3Question 3.
What does the insurance cost usually range for construction equipment?
- 1-3%
- 5-10%
- 2-4%
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Think about the necessary protection!
4Question 4.
True or False: Storage costs include wages for security guards.
- True
- False
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Consider all expenses incurred for equipment parking.
Question 5.
A company invests in a piece of equipment costing $150,000 with an interest rate of 5% and an insurance cost of 3%. Calculate the overall ownership investment cost including taxes (2%) and storage (1.5%).
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Calculate each cost separately before summing up.
Question 6.
Calculate the total ownership cost for machinery valued at $200,000, with investment cost of 8%, insurance cost of 3%, property tax of 4% and storage of 1%.
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Add each component cost step by step.

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