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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: It's an acronym used in project management.
Question 2
Easy
If the purchase price is Rs. 4,000,000 and the USCRF is 0.5, what is the EAC?
💡 Hint: Multiply the purchase price by the uniform series capital recovery factor.
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?
- Equivalent Annual Cost
- Estimated Average Cost
- Equal Annual Contribution
💡 Hint: Think about the term that speaks about projects' yearly cost.
Question 2
True or False: The USCRF is used to calculate future costs.
- True
- False
💡 Hint: Reflect on whether it applies to future or current costs.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Given a purchase price of Rs. 5,000,000 and a USCRF of 0.3, calculate the EAC for Year Four. Now consider yearly operating costs of Rs. 600,000 with a constant salvage value of Rs. 100,000.
💡 Hint: Carefully include all variables during your calculations.
Question 2
If the EAC for a purchase price is Rs. 3,000,000 and operating costs are Rs. 1,000,000, what would be the revised total if salvage value increases to Rs. 200,000?
💡 Hint: Keep track of how each component impacts the overall total.
Challenge and get performance evaluation