Practice Equipment Cost – Ownership Cost (time Value Method) (1.1) - Construction Methods and Equipment Management

Practice: Equipment Cost – Ownership cost (Time Value Method)

Lesson 1.1Construction Methods and Equipment Management

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9 questions

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6 sample questions

Question 1.
What does the term 'Time Value of Money' refer to?
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Think about what happens when you invest money.
Question 2.
Define 'Salvage Value'.
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What do you call the value when you sell something used?
3Question 3.
What is the Time Value of Money?
- Money today is worth less than in the future
- Money today is worth more than in the future
- They are equal
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Consider the effect of interest rates on money over time.
4Question 4.
The formula for the Present Worth Factor is P = F/(1+i)^n. True or False?
- True
- False
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Think about how money decreases in value over time.
Question 5.
A machine is priced at ₹ 1,50,000 today, and its future price is expected to escalate by 10% annually. What will be its price in 5 years?
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Use the future value formula to calculate.
Question 6.
You need ₹ 1 crore for equipment in 15 years. If you want to accumulate this amount using a uniform series deposit plan with an interest rate of 6%, how much will you need to deposit annually?
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Use the uniform series sinking fund factor to find this.

5 more questions in this section. Enroll free to practise them all.