1.2. Introduction to the Off Highway Truck

Try these first

1. 1.

   What does the term 'off-highway truck' refer to?

   Hint

   Think about where these trucks operate.

2. 2.

   What is depreciation?

   Hint

   Consider how the value of machines changes with usage.

3. 3.

   What is an off-highway truck primarily used for?

   • Public road transport
   • Construction and mining
   • Personal vehicle

   Hint

   Think about where heavy equipment is necessary.

4. 4.

   True or False: Off-highway trucks can be operated on public roads.

   • True
   • False

   Hint

   Consider the name and its implications.

5. 5.

   An off-highway truck costs 3 crores, runs 1600 hours/year with a salvage of 0.2 of the price. Calculate total operating and ownership costs if operational cost factors are 3209/hour and operator wages are 200/hour.

   Hint

   Combine all components and correlate to use hours.

6. 6.

   Using Peurifoy guidelines, if an off-highway truck’s salvage value is 20% and running life is estimated based on 20000 hours, determine effects on operational budgeting.

   Hint

   Think of how salvage value changes the overall estimate.