Practice Uniform Series Capital Recovery Factor - 2.2 | 19. Equipment Life and Replacement Analysis (Part 3) | Construction Engineering & Management - Vol 1
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Knowledge

2.2 - Uniform Series Capital Recovery Factor

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What does USCRF stand for?

💡 Hint: Think about the role it plays in cost calculations.

Question 2

Easy

What is a sunk cost?

💡 Hint: Consider what you would overlook in future decisions.

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 primary purpose of the Uniform Series Capital Recovery Factor?

  • To calculate depreciation
  • To find equivalent annual costs
  • To assess total equipment lifespan

💡 Hint: Focus on how financial metrics connect to recurring expenses.

Question 2

True or False: Sunk costs should be a primary consideration in future business decisions.

  • True
  • False

💡 Hint: Think about costs you cannot get back.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A piece of construction equipment was bought for $80,000, expected to last 12 years. Operating costs are $5,000 yearly. After year five, it can be sold for $25,000. Calculate its EAC for its first 12 years.

💡 Hint: Don’t forget to adjust for the market change at year five.

Question 2

An investment in machinery leads to $10,000 in annual savings when upgraded. If the upgrade costs $15,000 and expected lifespan is 10 years, determine if the machine should be upgraded if the discount rate is 8%.

💡 Hint: Look back at the formulas you've learned to calculate the present value.

Challenge and get performance evaluation