5.1 - Introduction to Peurifoy's Method
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Practice Questions
Test your understanding with targeted questions
What is ownership cost?
💡 Hint: Think of costs related to buying and maintaining the machine.
What factors do we consider in operating costs?
💡 Hint: Focus on costs incurred while the machine is being used.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula for calculating depreciation?
💡 Hint: Remember it involves initial price, tire cost, and useful life.
True or False: Operating costs include the purchase price of equipment.
💡 Hint: Consider what happens during the actual operation.
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Challenge Problems
Push your limits with advanced challenges
Given a machine that costs ₹5 crores, has a tire cost of ₹15 lakhs, operates for 2000 hours a year, with a useful life of 15 years. Calculate the annual depreciation.
💡 Hint: Apply the formula for depreciation carefully.
A piece of equipment has an hourly fuel consumption of 0.08 liters/hp, has 400 hp, and the fuel costs ₹70 per liter. Calculate the total hourly fuel cost.
💡 Hint: Break it down: consumption multiplied by horsepower and then by fuel cost.
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