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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What does EAC stand for?
💡 Hint: Think about cost over time.
Question 2
Easy
What is the purpose of calculating the present worth?
💡 Hint: Consider cash flows happening in different years.
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 EAC stand for?
- Annual Cost Equivalent
- Equivalent Annual Cost
- Cost of Asset Management
💡 Hint: Think about what it means in context of annual expenses.
Question 2
True or False: The USCRF can only be applied to operating costs.
- True
- False
💡 Hint: Consider all the factors we've discussed.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A machine costs 10,000,000 with a 5% interest rate and a USCRF of 0.1. Calculate the EAC.
💡 Hint: Follow the steps we used in class.
Question 2
If the operating cost is 300,000 for 3 years, what is the present worth at a 10% interest rate?
💡 Hint: Recall how we calculated present worth for operating costs.
Challenge and get performance evaluation