1.1 - Equipment cost – Caterpillar and Peurifoy method
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Practice Questions
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What components are included in ownership costs?
💡 Hint: Think about costs that are incurred when you own and maintain a machine.
How do you calculate the depreciation using the straight-line method?
💡 Hint: Consider the value lost over a certain period.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What method is primarily used for calculating depreciation in ownership costs?
💡 Hint: Remember which method divides the initial cost evenly.
True or False: Operating costs include only fuel and maintenance.
💡 Hint: Think about what keeps a machine running.
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Challenge Problems
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A construction company purchases a crane for $300,000 and estimates a salvage value of $30,000 with an expected life of 8,000 hours. Calculate the hourly depreciation and discuss how depreciation affects total project costs.
💡 Hint: Consider how many hours this crane will be in use each day to calculate costs accurately.
Analyze how fluctuations in fuel costs can impact your overall operating cost for an excavator model that consumes 10 gallons per hour. Discuss potential strategies to mitigate rising fuel costs on a budget.
💡 Hint: Explore how hourly rates change and keep track of the consumption factors.
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