Practice Finding Present Worth of Costs - 2.1 | 19. Equipment Life and Replacement Analysis (Part 3) | Construction Engineering & Management - Vol 1
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge

2.1 - Finding Present Worth of Costs

Enroll to start learning

You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define present worth.

💡 Hint: Think about why future money is not worth as much as money today.

Question 2

Easy

What is a sunk cost?

💡 Hint: Consider costs that are irrelevant for decision-making due to completion.

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 present worth represent?

  • The future value of costs
  • The current value of future costs
  • The initial cost of investment

💡 Hint: Remember, future amounts are often lower than their present parallels.

Question 2

True or False: Sunk costs should always be considered in equipment replacement analysis.

💡 Hint: Think if previous expenses genuinely affect future financial decisions.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A bulldozer costs $200,000, with annual operating costs increasing from $15,000 to $25,000 over its useful life of 5 years. If it can be sold for $30,000 after 5 years, calculate the total EAC assuming a discount rate of 8%.

💡 Hint: Consider each year's operating increase while summing expenses for accurate valuation.

Question 2

Your equipment’s initial cost is $120,000, it has a predicted market value of $20,000 after five years, and it incurs $10,000 in maintenance fees each year. Calculate the EAC based on a discount rate of 5%.

💡 Hint: Remember to factor in market projections to reflect realistic expectations.

Challenge and get performance evaluation