2.2 - Uniform Series Capital Recovery Factor
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Practice Questions
Test your understanding with targeted questions
What does USCRF stand for?
💡 Hint: Think about the role it plays in cost calculations.
What is a sunk cost?
💡 Hint: Consider what you would overlook in future decisions.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the primary purpose of the Uniform Series Capital Recovery Factor?
💡 Hint: Focus on how financial metrics connect to recurring expenses.
True or False: Sunk costs should be a primary consideration in future business decisions.
💡 Hint: Think about costs you cannot get back.
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Challenge Problems
Push your limits with advanced challenges
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.
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.
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