1 - Estimating Equipment Cost Using Two Methods
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
Define ownership costs.
💡 Hint: Think about what it costs to own rather than operate.
What is depreciation?
💡 Hint: Consider how a car loses value each year.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What are the main components of ownership costs?
💡 Hint: Think about costs that persist while owning an asset.
True or False: The Peurifoy method does not consider salvage value.
💡 Hint: Look at what the truck could be sold for after use.
Get performance evaluation
Challenge Problems
Push your limits with advanced challenges
A construction company purchased an off-highway dump truck for ₹3 crores, tires cost ₹11 lakhs, and it has an expected useful life of 12.5 years. Calculate the hourly ownership cost, excluding any operating costs.
💡 Hint: Break it down into components for clarity.
Using the Peurifoy method, a truck's initial cost is ₹3 crores. If the salvage value is estimated at 20% of this value, calculate the salvage value. Then, explain how this affects your overall cost estimation.
💡 Hint: Consider how resale value changes the money you'll calculate in your budget.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.