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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define ownership costs.
💡 Hint: Think about what costs arise from owning equipment.
Question 2
Easy
What is the fuel consumption factor?
💡 Hint: Consider how manufacturers might specify usage.
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 is included in ownership costs?
- Operating expenses
- Depreciation and taxes
- Repairs only
💡 Hint: Think about the costs associated with ownership.
Question 2
True or False: The Peurifoy method does not consider the time value of money.
- True
- False
💡 Hint: Reflect upon how time influences asset evaluations.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company has a bulldozer that costs $120,000 with a salvage value of $15,000 and is expected to operate for 10,000 hours. Calculate the hourly depreciation and discuss why this can affect overall project costs.
💡 Hint: Focus on covering depreciation over the useful life.
Question 2
You need to estimate the total operating costs for an excavator, including a fuel factor of 0.5 gallons/hp/hr, running at 180 hp over 8 hours. Calculate the fuel cost if fuel is $3 per gallon.
💡 Hint: Follow the rate of consumption closely.
Challenge and get performance evaluation