Practice Operating Cost Estimation - 5 | 14. Initial Cost Analysis | Construction Engineering & Management - Vol 1
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge

5 - Operating Cost Estimation

Enroll to start learning

You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the formula for calculating Equivalent Annual Cost (EAC)?

💡 Hint: Remember the components of the formula.

Question 2

Easy

Define Salvage Value.

💡 Hint: Think about asset depreciation.

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 does EAC stand for?

  • Equivalent Annual Cost
  • Estimated Annual Cost
  • Equalized Asset Calculation

💡 Hint: Think about investment recovery.

Question 2

True or False: Salvage value is always a fixed amount and does not change over the asset's life.

  • True
  • False

💡 Hint: Consider how wear and tear affect assets.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Calculate the total operating cost for a machinery project with an initial cost of ₹1,500,000, a salvage value of 10%, annual usage of 1,800 hours, and operational costs as outlined in the example.

💡 Hint: Break the problem into parts: find EAC, calculate operating costs, and sum them up.

Question 2

Imagine a company has machinery with an initial investment of ₹2,500,000 and annual usage of 2,400 hours. If they also incur repair costs of ₹2,000 per month and insurance of 5% of initial cost annually, find the total operating cost.

💡 Hint: Estimate repair costs per year and include in total operating costs.

Challenge and get performance evaluation