2.1 - Adding Purchase Price and Operating Costs
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Practice Questions
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What does EAC stand for?
💡 Hint: Think about cost over time.
What is the purpose of calculating the present worth?
💡 Hint: Consider cash flows happening in different years.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does EAC stand for?
💡 Hint: Think about what it means in context of annual expenses.
True or False: The USCRF can only be applied to operating costs.
💡 Hint: Consider all the factors we've discussed.
1 more question available
Challenge Problems
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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.
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.
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