Practice Operating Cost Estimation - 3 | 13. Estimating Equipment Cost Using Two Methods | Construction Engineering & Management - Vol 1
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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: Think about what occurs over the lifespan of an asset.

Question 2

Easy

What are the main components of ownership cost?

💡 Hint: Consider what you would pay for an asset over time.

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 component is not typically included in ownership costs?

  • Fuel Consumption
  • Taxes
  • Insurance

💡 Hint: Ownership pertains to what you pay for owning the asset.

Question 2

True or False: The Peurifoy method uses the initial purchase price to determine salvage value.

  • True
  • False

💡 Hint: Think about how depreciation and salvage value are related.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company purchases an equipment for ₹5 crores with an estimated salvage value of 10%. If the useful life of the machine is 15 years, calculate its annual depreciation.

💡 Hint: Subtract the estimated salvage value from the purchase price before dividing.

Question 2

Calculate the total cost of operation for an equipment where the operating cost is ₹4000 per hour. If the operator wages are ₹600 per hour and the equipment is used for 1600 hours annually, what is the total cost?

💡 Hint: Think about how there's a fixed number of operational hours in a year.

Challenge and get performance evaluation