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- Payments that differ in amount may be equal if made at different points in time is known as. Select one: a. Monetary values b. Time value c. Equivalence d. Equality
c. Equivalence
- The Time Value of money is based on the premise that b. Interest money can generate over a period of time. Select one: a. Equipment b. Interest c. Capital d. Budgets
- Comparing a future cost of one alternative with the present worth cost of a second alternative is valid and meaningful. Select one: True False
False
- The reason why the value of money increases with time True is because of the interest rate. Select one: True False
- Look up the following factor value in the given refer- ence table. (P/F, 5%, 6)
b. 0.
Select one: a. 0. b. 0. c. 1. d. 0.
- Look up the following factor value in the given refer- ence table. (P/A, 10%, 15) Select one: a. 0. b. 4. c. 7. d. 0.
- Look up the following factor value in the given refer- ence table. (A/F, 2%, 8)
Select one: a. 0. b. 0. c. 0. d. 1.
- Look up the following factor value in the given refer- ence table. (A/P, 4%, 2) Select one: a. 0. b. 0. c. 0. d. 2.
c. 7.
a. 0.
c. 0.
the truck at the end of 10 years? Select one: a. $15, b. $18, c. $19, d. $18,
- What the annual cost for a tractor is if a contractor is considering purchasing a used tractor for $180,000 at 10% interest that she could use for 10 years and then sell for an estimated salvage value of $10,000. Annual maintenance and repair costs for the used tractor are estimated to be $15,000 per year. Select one: a. $43, b. $58, c. $41, d. $40,
- Book Value is the less the depreciable value. Select one: a. Initial cost b. Aftermarket cost c. Repair cost d. Operating cost
- Depreciable Value is the purchase price less the . Select one: a. Repair factor b. Sale price
a. $43,
a. Initial cost
c. Salvage value
c. Salvage value d. Book value
- The of depreciation claims a constant d. Straight Line Method amount on taxes each year. Select one: a. Anticipated Resale Method b. Declining Balance Method c. Sum-Of-The-Years Method d. Straight Line Method
- is an artificial expense of an estimated loss that can offset income taxes over a period of years. Select one: a. Operating Expenses b. Tire Replacement c. Depreciation d. Loss
- A grader has an initial cost of $220,000 and an es- timated useful life of 10 years. The salvage value after 10 years of use is estimated to be $25,000. What is the book value at the end of the first year if the straight-line method of depreciation accounting is used? Select one: a. $25, b. $44, c. $19, d. $200,
c. Depreciation
d. $200,
- The contractor purchased the tractor for $220,000 and a. $39, anticipates a salvage value of $25,000 after 5 years of
The contractor purchased the tractor for $220,000 and anticipates a salvage value of $25,000 after 5 years of use. What is the book value at the end of the 1st year if the double declining-balance method of depreciation accounting is used? Select one: a. $132, b. $79, c. $28, d. $47,
- Equipment depreciation is a/an. Select one: a. Ownership Cost b. Operating Cost
- Equipment maintenance and repair is a/an . Select one: a. Ownership Cost b. Operating Cost
- Equipment service is a/an. Select one: a. Ownership Cost b. Operating Cost
- Equipment storage is a/an. Select one: a. Operating Cost b. Ownership Cost
a. Ownership Cost
b. Operating Cost
b. Operating Cost
b. Ownership Cost
- a. Operating Cost
Fuel to run the equipment is a/an. Select one: a. Operating Cost b. Ownership Cost
- Interest paid to finance the cost of the equipment is a/an. Select one: a. Operating Cost b. Ownership Cost
- Operating costs tend to over time Select one: a. Vary b. Decrease c. Increase d. Stay the same
- Ownership costs tend to over time Select one: a. Vary b. Stay the same c. Increase d. Decrease
- Replacing equipment tires are a/an. Select one: a. Ownership Cost b. Operating Cost
b. Ownership Cost
c. Increase
d. Decrease
b. Operating Cost
- Taxes paid on the purchase of a piece of equipment are b. Ownership Cost a/an. Select one:
ue of $35,000. The flywheel horsepower rating of the loader's diesel engine is 105 horsepower. The interest rate is 10%. The loader operator will earn $34.00 per hour including fringe benefits, and diesel fuel costs $1.20 per gallon. How much is the contractor's hourly depreciation por- tion of ownership cost for the loader if using the Time Value Method (see textbook page 42 Example 2.8 for reference)? Select one: a. $6.23/hr b. $8.27/hr c. $7.43/hr d. $9.37/hr
- How much is the contractor's hourly depreciation por- b. $6.01/hr tion of ownership cost for the loader if using the Aver- age Annual Investment Method (see textbook page 44 Example 2.9 for reference)?
Select one: a. $3.26/hr b. $6.01/hr c. $2.75/hr d. $7.85/hr
- How much is the hourly equipment repair cost if the annual cost of repairs equals 70% of straight-line de- preciation? Select one: a. $1.93/hr b. $3.89/hr
a. $1.93/hr
c. $2.75/hr d. $3.50/hr
- Please calculate the throttle load factor if the engine will work at full throttle while loading the bucket (45% of the time) and at three-quarter throttle to travel and dump. (See textbook page 47 Example 2.12 for refer- ence). Select one: a. 0. b. 0. c. 0.
- Please calculate time factor if it is estimated that the work will be steady at an efficiency equal to a 55-min hour. (See textbook page 47 Example 2.12 for refer- ence) Select one: a. 0. b. 0. c. 0. d. 0.
b. 0.
a. 0.
- Please calculate the hourly fuel cost if the wheel loader c. $9.00/hr has a 250-fwhp diesel engine, and the diesel fuel costs $1.20 per gallon, and the operating factor (combined factor) is 0.75. (See textbook page 47 Example 2.12 for reference) Select one: a. $2.50/hr b. $1.20/hr
a. 4 sets b. 2 sets c. 3 sets d. 5 sets
- Please calculate the hourly tire depreciation cost of the d. $2.04/hr first set of tires considering the time value of money, assuming that the loader has a service life of 10 years and operates 2,000 hours per year, and a set of tires can be expected to last 4,000 hours. (See textbook page 49 Example 2.14 for reference) Select one: a. $6.25/hr b. $12.5/hr c. $0.50/hr d. $2.04/hr
- Please calculate the hourly tire depreciation cost of the second set of tires considering the time value of money, assuming that the loader has a service life of 10 years and operates 2,000 hours per year, and a set of tires can be expected to last 4,000 hours. (See textbook page 49 Example 2.14 for reference)
Select one: a. $5.95/hr b. $1.68/hr c. $2.04/hr d. $0.79/hr
b. $1.68/hr
