Practice Recap Of Previous Lecture (1.2) - Construction Methods and Equipment Management

Practice: Recap of Previous Lecture

Lesson 1.2Construction Methods and Equipment Management

Practise this section

8 questions

Flashcard drill
4 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What does ownership cost encompass?
Show hintHide hint
Think about the major expenses incurred by owning an asset.
Question 2.
How does inflation impact the cost of equipment?
Show hintHide hint
Consider how prices change over time.
3Question 3.
What does ownership cost primarily include?
- Only maintenance
- Only depreciation
- Depreciation and maintenance
Show hintHide hint
Think about all the expenses related to the ownership of an asset.
4Question 4.
True or False: Time value of money implies that money now is worth less than the same amount later.
- True
- False
Show hintHide hint
Consider why people desire to receive money earlier.
Question 5.
You plan to buy a machine costing $20,000 today. What will be the future cost after 5 years if inflation increases by 4% annually?
Show hintHide hint
Use the future value formula incorporating inflation.
Question 6.
If a company has to allocate funds for an equipment purchase of $150,000 in 6 years, what is the present value it needs to deposit today at a 7% interest rate?
Show hintHide hint
Apply the present worth compound amount factor.

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