Practice Cost of Investment - 1 | 7. Cost of Investment | Construction Engineering & Management - Vol 1
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the cost of investment?

💡 Hint: Think about both loans and company assets.

Question 2

Easy

Name one method used to calculate the cost of investment.

💡 Hint: One considers present value while the other looks at averages.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does the cost of investment encompass?

  • Only purchase price
  • Interest on loans
  • Both purchase price and potential returns

💡 Hint: Think of both borrowing and using company funds.

Question 2

Is the time value method considered more accurate than the average annual investment method?

  • True
  • False

💡 Hint: Reflect on how cash flows can vary.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

An equipment is purchased for $150,000, with an estimated salvage value of $15,000. Calculate the depreciation cost per year over its 15-year life using straight-line depreciation.

💡 Hint: Use the straight-line depreciation formula.

Question 2

If a machine’s average annual investment is $50,000 and its insurance is 3%, calculate the yearly insurance cost.

💡 Hint: Remember to multiply the percentage by the average annual investment.

Challenge and get performance evaluation