3 - Equipment Cost Estimation
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Practice Questions
Test your understanding with targeted questions
Define ownership cost in equipment management.
💡 Hint: Think about costs that exist even when the equipment is idle.
What is the primary purpose of estimating equipment costs?
💡 Hint: Consider the financial implications of inaccurate estimates.
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Interactive Quizzes
Quick quizzes to reinforce your learning
Which cost is incurred regardless of equipment usage?
💡 Hint: Remember the costs that exist even when idle.
True or False: All ownership costs are directly related to the active use of equipment.
💡 Hint: Consider the definition of ownership costs.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A construction company purchased a bulldozer for $400,000, expected to last 15 years with a salvage value of $50,000. Using the straight-line method, calculate the depreciation after five years.
💡 Hint: Use the formula: (Initial Cost - Salvage Value) / Useful Life.
If an excavator has an initial cost of $250,000 and is expected to depreciate at a rate defined by the double-declining balance method, calculate its book value after three years assuming no salvage cost.
💡 Hint: Remember not to use salvage value in this method.
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