Practice Summary of Ownership Cost Estimation - 6 | 7. Cost of Investment | Construction Engineering & Management - Vol 1
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge

6 - Summary of Ownership Cost Estimation

Enroll to start learning

You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define investment cost in your own words.

💡 Hint: Think about the basis of costs incurred for equipment ownership.

Question 2

Easy

List two components of ownership cost.

💡 Hint: Consider the expenses that recur over time with machinery.

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 represent?

  • A) The annual cost of financing machinery
  • B) The purchase price of the machinery
  • C) The total operational cost

💡 Hint: Reflect on what future costs are derived from investments.

Question 2

True or False: The average annual investment method is typically more accurate than the time value method.

  • True
  • False

💡 Hint: Consider the factors involved in each method's calculation.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A heavy construction machine costs $500,000 and has an expected lifespan of 10 years. If it has a salvage value of $50,000, calculate its annual depreciation using the straight-line method.

💡 Hint: Consider the total depreciation spread over the lifespan.

Question 2

Company X purchases a crane for $200,000, incurs 2% for insurance, 1.5% for taxes, 3% for storage, and expects depreciation of $25,000 annually. Calculate the total ownership cost after one year.

💡 Hint: Ensure to calculate percentages accurately based on equipment value.

Challenge and get performance evaluation