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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for calculating depreciation?
💡 Hint: Look at how ownership costs are calculated.
Question 2
Easy
Name two components of operating costs.
💡 Hint: Think about what it costs to run equipment.
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 the primary formula for determining depreciation costs?
💡 Hint: Consider the components of ownership costs.
Question 2
True or False: The Peurifoy method considers the timing of cash flows?
- True
- False
💡 Hint: Think about the differences between these two methods.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Using a bulldozer with an initial cost of $250,000 and a salvage value of $30,000 over 8,000 hours, calculate the depreciation and include potential fuel costs based on a consumption factor of 0.8 gallons/hour.
💡 Hint: Break each calculation into parts—start with depreciation and then fuel cost.
Question 2
Given different repair factors based on usage ranges, develop a robust estimate for a machine that has been used for 12,000 hours, with a repair factor of 15% of ownership costs.
💡 Hint: Utilize the ownership cost to verify repair costs.
Challenge and get performance evaluation