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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the purchase price used for calculating EAC?
💡 Hint: Look for the initial cost in the problem statement.
Question 2
Easy
What is the USCRF for year 3 at an interest of 15%?
💡 Hint: Check how USCRF is calculated or given in the lesson.
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 represent in financial analysis?
- Annual cost of an asset
- Total purchase price
- Total maintenance cost
💡 Hint: Think about what expenses are included in EAC.
Question 2
Is the USCRF constant for all years?
- True
- False
💡 Hint: Recall how we determine USCRF for different years.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A corporation is evaluating an asset purchased for 10,000,000 rupees with an expected life of 5 years and a salvage value of 2,000,000 rupees. If the operating and maintenance costs are 1,000,000 per year, find the EAC.
💡 Hint: Find separate EAC for purchase and O&M, then combine.
Question 2
Consider a project with revenue inflow of 500,000 rupees, a purchase cost of 3,000,000 rupees, yearly operating costs of 150,000 with no salvage value. Calculate EAC.
💡 Hint: Relevance of salvage value needs careful handling in EAC context.
Challenge and get performance evaluation