CM 2113 TEST 1 - CHAO WANG QUESTIONS AND ANSWERS 2025

CM 2113 TEST 1 - LATEST
CHAO WANG
Please calculate the hourly tire depreciation cost of the 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


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
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, CM 2113 TEST 1 - LATEST
CHAO WANG
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


Payments that differ in amount may be equal if made at different points
in time is known as ____________.
Select one:
a. Monetary values
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, CM 2113 TEST 1 - LATEST
CHAO WANG
b. Time value
c. Equivalence
d. Equality
c. Equivalence
The Time Value of money is based on the premise that money can
generate _______ over a period of time.
Select one:
a. Equipment
b. Interest
c. Capital
d. Budgets
b. Interest
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


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