5 - Peurifoy Approach to Equipment Cost Estimation
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Practice Questions
Test your understanding with targeted questions
What does ownership cost include?
💡 Hint: Think about the costs associated with having a vehicle.
Define depreciation.
💡 Hint: How does the value of equipment change over time?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is included in ownership costs?
💡 Hint: Think about costs that occur just because you own the asset.
True or False: Operating costs include depreciation.
💡 Hint: Operating costs are about usage, not ownership.
1 more question available
Challenge Problems
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A dump truck has an initial cost of 4 crores with a salvage value of 20%. If the truck has an expected useful life of 15 years, calculate the annual depreciation.
💡 Hint: Remember to first find the salvage value before calculating depreciation.
Calculate the total operating costs for a dump truck if the fuel cost is 1,200/hour, tire wear is 400/hour, and maintenance is 600/hour. If the operator wage is 300/hour, what is the total cost per hour?
💡 Hint: Add up all the costs carefully!
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