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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Calculate the depreciation for a machine valued at 50,000 with a depreciation rate of 0.4.
💡 Hint: Use the formula D = P × r.
Question 2
Easy
What does book value represent?
💡 Hint: Think about how depreciation affects asset value.
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 is the formula for calculating depreciation?
- D = P × r
- D = P + r
- D = P - r
💡 Hint: Think of how we previously calculated the first year's depreciation.
Question 2
Does the book value increase over time?
- True
- False
💡 Hint: Recall our definition of book value.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
You have a piece of equipment that costs 500,000, with a depreciation rate of 30%. Calculate the book value after 4 years assuming straight-line depreciation.
💡 Hint: Calculate yearly depreciation and subtract from the original cost.
Question 2
A machine has an operational cost of 20,000 per year and a maintenance cost of 5,000. If the depreciation is 25,000 each year, how long can this machine be economically viable before replacement is needed?
💡 Hint: Look for cumulative costs exceeding those of a new machine.
Challenge and get performance evaluation