Practice Defining Average Value of Machine - 1.2.2.1 | 7. Cost of Investment | Construction Engineering & Management - Vol 1
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1.2.2.1 - Defining Average Value of Machine

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define investment costs in your own words.

💡 Hint: Think about what expenses come with owning machinery.

Question 2

Easy

What are two sources of investment costs?

💡 Hint: Consider where the capital for machinery might come from.

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 investment cost refer to?

  • Annual costs associated with capital invested
  • Monthly expenses on maintenance
  • Fixed costs for machinery rental

💡 Hint: Focus on costs related to ownership.

Question 2

True or False: The average annual investment method is the most precise method for calculating ownership costs.

  • True
  • False

💡 Hint: Consider how each method accounts for timing.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A machine's purchase price is 150 lakhs, with a salvage value of 20 lakhs over its 15-year life. Use the AAI formula to calculate the average annual investment.

💡 Hint: Follow the formula step by step.

Question 2

If the total ownership cost calculation needs to include an average investment cost of 60 lakhs, insurance at 2%, taxes at 4%, and storage at 1.5%, calculate the total ownership cost for the year.

💡 Hint: Multiply the average investment by the sum of percentages to find the costs.

Challenge and get performance evaluation