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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for calculating EAC?
💡 Hint: Remember, USCRF is used to spread the cost over the years.
Question 2
Easy
How do you calculate Present Worth?
💡 Hint: Focus on the future cash flow and the relevant 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 Active Cost
- Equivalent Annual Cost
- Equally Allocated Cost
💡 Hint: Think about the purpose of annual cost in financial assessments.
Question 2
True or False: The present worth factor is used to convert future cash flows to their present value.
- True
- False
💡 Hint: Consider how future value relates to current value.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company invests 8,000,000 for 4 years with a 12% interest rate. What is the annual cost?
💡 Hint: Make sure to get the correct USCRF value from financial tables.
Question 2
If your machine has an O&M cost of 150,000 annually and a salvage value of 1,500,000 after 5 years, what is the total cost adjusted to present worth?
💡 Hint: Think through each cash flow step by step.
Challenge and get performance evaluation