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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define the term 'Cost of Investment'.
💡 Hint: Consider what it means in terms of capital.
Question 2
Easy
What is depreciation?
💡 Hint: Think about how value decreases with time.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What does the Cost of Investment entail?
- Only purchase price
- Purchase price and depreciation
- Annual cost including capital and opportunity costs
💡 Hint: Remember the broader definition of costs.
Question 2
True or False: The average annual investment method simplifies the complexity of ownership costs.
- True
- False
💡 Hint: Consider the purpose of the method.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company buys a loader for 50 lakhs with a 5-lakh salvage value. The useful life is 10 years. Calculate the average annual investment.
💡 Hint: Get the components of initial cost and salvage value correct.
Question 2
If a machine costs 120 lakhs, with an expected salvage of 15 lakhs, how does its ownership cost influence bid preparation?
💡 Hint: Think about long-term financial planning.
Challenge and get performance evaluation