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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 expresses costs on an annual basis.
Question 2
Easy
Calculate the EAC for a purchase price of 3,000,000 using a factor of 0.5.
💡 Hint: Multiply the price by the provided 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?
- Effective Annual Cost
- Equalized Asset Cost
- Equivalent Annual Cost
💡 Hint: Consider the definition of EAC discussed.
Question 2
True or False: The salvage value can decrease total costs.
- True
- False
💡 Hint: Think about how cash inflows affect overall financials.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
If a machine's EAC for purchase is 50,000, for operating is 15,000, and salvage at 10,000, calculate its total yearly cost.
💡 Hint: Add EAC for purchase and operations and subtract salvage.
Question 2
Scenario: You have an operating cost that changes yearly by 5%. If the initial cost is 10,000, what will it be in Year 3?
💡 Hint: Remember to apply the percentage increase for each subsequent year.
Challenge and get performance evaluation