Practice Equipment Must Pay For Itself (2.1) - Planning Process of Equipment

Practice: Equipment Must Pay for Itself

Lesson 2.1Planning Process of Equipment

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10 questions

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6 sample questions

Question 1.
What is the Total Cost of Ownership?
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Think about all expenses involved in owning a piece of equipment.
Question 2.
Why is it important for equipment to pay for itself?
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Consider how equipment impacts overall project costs.
3Question 3.
What does 'equipment must pay for itself' mean?
- It should be cheap
- It must cover its costs from project savings
- It's always a good investment
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Think about the reasons for investing in equipment.
4Question 4.
True or False: A contractor should own every possible piece of equipment for all tasks.
- True
- False
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Consider practicality regarding equipment ownership.
Question 5.
A construction contractor owns an older model excavator that costs $5,000 annually in maintenance. They are considering a new model that costs $10,000 but has lower operational costs due to better efficiency. Analyze whether they should keep the old model or switch.
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Focus on the overall cost comparison rather than just the initial purchase price.
Question 6.
A specialized machine required for a project costs $300,000. The project has a contract value of $500,000, but other projects might arise. Discuss how the contractor should proceed in terms of procurement and future job consideration.
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Think about how multiple projects can distribute the cost of the equipment.

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