Practice Ownership Cost Calculation - 4 | 14. Initial Cost Analysis | Construction Engineering & Management - Vol 1
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4 - Ownership Cost Calculation

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What factors do you need to calculate the annualized initial cost?

💡 Hint: Remember, it's about what you pay to keep the equipment annually.

Question 2

Easy

What does salvage value represent?

💡 Hint: Think about what you can sell it for later.

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 the annualized initial cost represent?

  • Current value of the equipment
  • Uniform annual cost
  • Sum of all costs

💡 Hint: Focus on 'annual' when remembering this.

Question 2

Is salvage value a significant part of the total ownership cost?

  • True
  • False

💡 Hint: Think about what you get back at the end!

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

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!

Question 2

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.

Challenge and get performance evaluation