2.3 - Owning and Renting Equipment
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 one advantage of renting equipment?
💡 Hint: Think about expenses and commitments related to ownership.
List one cost associated with owning equipment.
💡 Hint: Consider what happens when equipment ages.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is one primary consideration when deciding to own or rent construction equipment?
💡 Hint: 'Economic' involves assessing costs and benefits.
True or False: Renting equipment eliminates all ownership costs.
💡 Hint: Does renting entirely remove costs?
Get performance evaluation
Challenge Problems
Push your limits with advanced challenges
A company is considering purchasing a high-end crane for $500,000. The crane will have ongoing operating costs of $50,000 per year, including maintenance and insurance. Alternatively, renting the crane costs $30,000 a month. Calculate the breakeven point when renting becomes more cost-effective.
💡 Hint: Set the costs of renting equal to the costs of owning and solve for x.
Evaluate a scenario where a contractor chooses to rent a specialized machine for a small project over purchasing it. List factors that could influence this decision.
💡 Hint: Think about how often the equipment will be needed and the total cost of ownership.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.