Practice Calculating Equivalent Annual Cost of Resale Value - 1.8 | 20. Equivalent Annual Cost Calculation | Construction Engineering & Management - Vol 1
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge

1.8 - Calculating Equivalent Annual Cost of Resale Value

Enroll to start learning

You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define Equivalent Annual Cost (EAC).

💡 Hint: Think about the overall costs incurred annually.

Question 2

Easy

What does the Present Worth Factor do?

💡 Hint: Consider how future values are made relevant today.

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?

  • Enhanced Annual Cost
  • Equivalent Annual Cost
  • Estimated Annual Cost

💡 Hint: Think about the cost of deploying financial resources in annual terms.

Question 2

True or False: The present worth factor discounts future cash flows to their value today.

  • True
  • False

💡 Hint: Consider how you account for future gains in current spending.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

If a machine has an initial purchase price of 4,000,000, a salvage value of 600,000, and operating costs of 200,000 yearly, calculate the EAC over five years using a capital recovery factor of 0.2023.

💡 Hint: Remember to factor in both the depreciation and annual operating costs.

Question 2

Evaluate how different salvage values (300,000 versus 600,000) could change the EAC calculation across five years. Assume the same operating costs and purchasing price.

💡 Hint: Examine how salvage values affect overall cash flow calculations.

Challenge and get performance evaluation