Problem 7Illustrate which of the following sentences is true or false:a. Under the tax system of the U.S., an owner can reduce his company's taxburden.b. Capacity in construction contracts means that at least one of the parties mustbe of sufficient age to enter into a contract.c. Equipment costs rank second to labor cost in terms of uncertainty.d. The optimum moisture content is the percent of water, at a given compactioneffort, which corresponds to the maximum void ratio of the soil.e. In situ is a term that refers to soil in its original or undisturbed condition.f. Diesel engines have longer service lives than gasoline engines.g. A bulldozer has no set volumetric capacity.h. Nuclear compaction test is nondestructive in that it does not require theremoval of soil samples from the site of the tests.i. Hydraulic front shovels are used primarily to excavate above the naturalsurface of the ground.j. Regardless of how much a machine is used, the owner must pay owning cost.k. Construction contracts must contain four legal items to be valid: agreement,consideration, capacity and legality.1. Equipment Cost = Ownership Cost + Operating Cost.Problem 8Fill in the blanks1. List two general types of construction contracts:-----,----2. In addition to purchase, equipment may be employed by the following twomeans:--3. Name four types of soil:----4. ASTM stands for:--5. Dozers are mainly classified into two types:-------,------6.--- is the key to the utility of many excavators.ProblemA contractor is considering the following three alternatives:a. Purchase a new microcomputer system for $15,000. The system is expected6 years with salvage value of $1,000.b. Lease a new microcomputer system for $3,000 per year, payable in advance. Thesystem should last 6 years.c. Purchase a used microcomputer system for $8,200. It is expected to last 3 yearswith no salvage value.Use a common-multiple-of-lives approach. If MARR of 8% is used, whichalternative should be selected using a discounted present worth analysis? If theMARR is 12%, which alternate should be selected?last

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Problem 7 Illustrate which of the following sentences is true or false: a. Under the tax system of the U.S., an owner can reduce his compa burden. b. Capacity in construction contracts means that at least one of the par be of sufficient age to enter into a contract. c. Equipment costs rank second to labor cost in terms of uncertainty.

Problem 7 Illustrate which of the following sentences is true or false: a. Under the tax system of the U.S., an owner can reduce his compa burden. b. Capacity in construction contracts means that at least one of the par be of sufficient age to enter into a contract. c. Equipment costs rank second to labor cost in terms of uncertainty.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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