Practice Equipment cost – Caterpillar and Peurifoy method - 1.1 | 12. Equipment cost – Caterpillar and Peurifoy method | Construction Engineering & Management - Vol 1
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1.1 - Equipment cost – Caterpillar and Peurifoy method

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What components are included in ownership costs?

💡 Hint: Think about costs that are incurred when you own and maintain a machine.

Question 2

Easy

How do you calculate the depreciation using the straight-line method?

💡 Hint: Consider the value lost over a certain period.

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 method is primarily used for calculating depreciation in ownership costs?

  • Declining balance method
  • Straight-line method
  • Units of production method

💡 Hint: Remember which method divides the initial cost evenly.

Question 2

True or False: Operating costs include only fuel and maintenance.

  • True
  • False

💡 Hint: Think about what keeps a machine running.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

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.

Question 2

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.

Challenge and get performance evaluation