4.3 - Total Hourly Ownership Cost
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.
Practice Questions
Test your understanding with targeted questions
What is the formula for calculating annualized initial cost?
💡 Hint: Look for the definitions of 'i' and 'n'.
How do you derive salvage value from initial cost?
💡 Hint: Remember the salvage value is often expressed as a percentage.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula for calculating the annualized initial cost?
💡 Hint: Recall the components of the formula we discussed.
True or False: The salvage value is included in the calculation of total hourly ownership cost.
💡 Hint: Think about how depreciation relates to ownership costs.
Get performance evaluation
Challenge Problems
Push your limits with advanced challenges
If a piece of equipment costs ₹1,00,00,000 and has a life of 20 years expected at 10% salvage, calculate its annual depreciation.
💡 Hint: Subtract the salvage from the initial cost before dividing by the lifespan.
Given an equipment that incurs ₹750/hr for operating costs, how does this affect a total ownership cost derived from other factors? If ownership resulted in ₹1900/hr, find the complete total.
💡 Hint: Add the operating and total ownership together for a complete picture.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.