Practice Estimating Equipment Cost Using Two Methods (1) - Estimating Equipment Cost Using Two Methods

Practice: Estimating Equipment Cost Using Two Methods

Lesson 1Estimating Equipment Cost Using Two Methods

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8 questions

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Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
Define ownership costs.
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Think about what it costs to own rather than operate.
Question 2.
What is depreciation?
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Consider how a car loses value each year.
3Question 3.
What are the main components of ownership costs?
- Depreciation
- Interest
- Insurance
- Taxes
- Fuel
- Repairs
- Labor
- Initial Cost
- Operating Cost
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Think about costs that persist while owning an asset.
4Question 4.
True or False: The Peurifoy method does not consider salvage value.
- True
- False
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Look at what the truck could be sold for after use.
Question 5.
A construction company purchased an off-highway dump truck for ₹3 crores, tires cost ₹11 lakhs, and it has an expected useful life of 12.5 years. Calculate the hourly ownership cost, excluding any operating costs.
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Break it down into components for clarity.
Question 6.
Using the Peurifoy method, a truck's initial cost is ₹3 crores. If the salvage value is estimated at 20% of this value, calculate the salvage value. Then, explain how this affects your overall cost estimation.
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Consider how resale value changes the money you'll calculate in your budget.

4 more questions in this section. Enroll free to practise them all.