Practice Total Hourly Ownership Cost - 4.3 | 14. Initial Cost Analysis | Construction Engineering & Management - Vol 1
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Knowledge

4.3 - Total Hourly Ownership Cost

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the formula for calculating annualized initial cost?

💡 Hint: Look for the definitions of 'i' and 'n'.

Question 2

Easy

How do you derive salvage value from initial cost?

💡 Hint: Remember the salvage value is often expressed as a percentage.

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 the formula for calculating the annualized initial cost?

  • A) Annualized Initial Cost = Initial Cost × [i(1+i)ⁿ / [(1+i)ⁿ - 1]]
  • B) Annualized Initial Cost = Initial Cost / (1 + i)ⁿ
  • C) Annualized Initial Cost = i + n

💡 Hint: Recall the components of the formula we discussed.

Question 2

True or False: The salvage value is included in the calculation of total hourly ownership cost.

  • True
  • False

💡 Hint: Think about how depreciation relates to ownership costs.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

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.

Question 2

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.

Challenge and get performance evaluation