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

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is an investment cost?

💡 Hint: Think of costs involved in financing machinery.

Question 2

Easy

How is average annual investment calculated?

💡 Hint: Consider depreciation and machine value over time.

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 are investment costs primarily associated with?

  • Only purchase price
  • Annual capital costs
  • Insurance only

💡 Hint: Think of annual financial responsibilities.

Question 2

True or False: The average annual investment method always provides an exact calculation.

  • True
  • False

💡 Hint: Consider the nature of approximation.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A construction firm buys a machine for $250,000 at 5% interest on a loan. Calculate the annual investment cost, and explain how this figure influences overall project budgeting.

💡 Hint: Think about integrating costs into wider financial planning.

Question 2

Consider a machinery fleet with the following data: Machine A ($200k, insurance 2%), Machine B ($150k, insurance 3%). Calculate the average insurance cost across the fleet per machine.

💡 Hint: Remember how to average two calculated amounts.

Challenge and get performance evaluation