2.1 - Equipment Must Pay for Itself
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Practice Questions
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What is the Total Cost of Ownership?
💡 Hint: Think about all expenses involved in owning a piece of equipment.
Why is it important for equipment to pay for itself?
💡 Hint: Consider how equipment impacts overall project costs.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does 'equipment must pay for itself' mean?
💡 Hint: Think about the reasons for investing in equipment.
True or False: A contractor should own every possible piece of equipment for all tasks.
💡 Hint: Consider practicality regarding equipment ownership.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
A construction contractor owns an older model excavator that costs $5,000 annually in maintenance. They are considering a new model that costs $10,000 but has lower operational costs due to better efficiency. Analyze whether they should keep the old model or switch.
💡 Hint: Focus on the overall cost comparison rather than just the initial purchase price.
A specialized machine required for a project costs $300,000. The project has a contract value of $500,000, but other projects might arise. Discuss how the contractor should proceed in terms of procurement and future job consideration.
💡 Hint: Think about how multiple projects can distribute the cost of the equipment.
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