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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What are the three main components of total operating costs?
💡 Hint: Think about the costs related to owning and using equipment.
Question 2
Easy
How do you calculate annual depreciation?
💡 Hint: Look for the formula involving initial prices.
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 is included in ownership costs?
- Fuel costs
- Depreciation
- Wages
💡 Hint: Think about costs related to owning, not using the equipment.
Question 2
True or False: The Peurifoy method considers the time value of money.
- True
- False
💡 Hint: Remember how time and cash flows are related.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company purchases a dump truck for 4 crores. Calculate the annual depreciation if the useful life is estimated at 10 years and tire costs are 15 lakhs.
💡 Hint: Consider both initial purchase and tire costs.
Question 2
Using the Peurifoy method, explain how the time value adjustment might alter the estimated costs for a project over 15 years.
💡 Hint: Think about how inflation affects money over time.
Challenge and get performance evaluation