4 - Ownership Cost Calculation
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Practice Questions
Test your understanding with targeted questions
What factors do you need to calculate the annualized initial cost?
💡 Hint: Remember, it's about what you pay to keep the equipment annually.
What does salvage value represent?
💡 Hint: Think about what you can sell it for later.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does the annualized initial cost represent?
💡 Hint: Focus on 'annual' when remembering this.
Is salvage value a significant part of the total ownership cost?
💡 Hint: Think about what you get back at the end!
1 more question available
Challenge Problems
Push your limits with advanced challenges
A contractor has a bulldozer worth ₹5,00,000 with a salvage value of ₹50,000. The useful life is projected to be 10 years, and the operating hours are 2000 annually. Calculate an approximate hourly cost considering common costs.
💡 Hint: Work through each cost and then sum them!
Your scoring method uses the average cost of two models, one costing ₹6,00,000 with a 15% salvage value, and another costing ₹7,00,000 with a 10% salvage. If both have a lifespan of 12 years, or 2500 hours, calculate the average hourly costs.
💡 Hint: Calculate both models' costs separately before averaging.
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