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In ______________ the owner has to invest a certain amount for the purchase of an equipment.

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in Construction & Building Materials by (190k points)
In ______________ the owner has to invest a certain amount for the purchase of an equipment.

(a) Cost depreciation

(b) Investment charges

(c) Operation cost

(d) Management

This question was posed to me at a job interview.

My question is from Operating Cost of Equipment topic in section Construction Equipments of Construction & Building Materials

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The correct answer is (b) Investment charges

Easiest explanation: The investment cost to the owner includes interest on money invested, taxes of all times, insurance premium and charges for storage. The rates of these items will vary from place to place, equipment to equipment and owner to owner.

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