1.2 - Outline of presentation
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Practice Questions
Test your understanding with targeted questions
What does depreciation represent in equipment costs?
💡 Hint: Think about the lifespan of the machine.
What are the two main components of equipment costs discussed in this section?
💡 Hint: Recall the breakdown we discussed in class.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the Caterpillar method primarily focused on?
💡 Hint: Think about the purpose of this method.
True or False: Operating costs include depreciation.
💡 Hint: Remember how we classified costs in class.
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Challenge Problems
Push your limits with advanced challenges
You have an excavator with an initial cost of $250,000, a salvage value of $30,000, and its lifespan is 10 years. Calculate the annual depreciation and total ownership cost if the operating cost is estimated at $50,000 per year.
💡 Hint: Start with the depreciation calculation before summing total costs.
An excavator has a fuel consumption rate of 15 gallons per hour, operating for 6 hours daily, with fuel priced at $3 per gallon. What is the daily fuel cost?
💡 Hint: Multiplication is key here; remember to multiply through to get the total costs.
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