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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What does Present Worth mean?
💡 Hint: Think about current vs. future money.
Question 2
Easy
What is the formula for calculating EAC?
💡 Hint: How do we recover costs annually?
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 is the purpose of calculating Present Worth?
- To determine current expenses
- To find the current value of future cash flows
- To calculate operating costs
💡 Hint: Think of future money being brought to today.
Question 2
True or False: EAC helps in understanding annualized costs over the operating period.
- True
- False
💡 Hint: Consider annual costs meaning.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Calculate the present worth of ₹150,000 at an interest rate of 10% over 4 years. Then, determine its EAC.
💡 Hint: Use the present worth formula first.
Question 2
A company has an increasing annual cost which affects its EAC. If the initial cost was ₹500,000 and increased to ₹600,000 after 3 years, evaluate its impact on long-term budgeting.
💡 Hint: Consider both cost stability and planning.
Challenge and get performance evaluation