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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula to calculate the Annualized Initial Cost?
💡 Hint: Look for factors shortening the period of investment.
Question 2
Easy
Define salvage value in the context of equipment ownership.
💡 Hint: Consider percentage estimates at liquidation.
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 percentage of the initial cost is considered when calculating salvage value?
- 10%
- 20%
- 30%
💡 Hint: Consider fractions after deducting costs.
Question 2
Hourly depreciation compensates for which difference?
- True
- False
💡 Hint: Recall the depreciation formula context.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
You have a piece of equipment costing ₹50,000,000 with a 12% interest rate. If it's depreciable over 15 years, what is the annualized cost?
💡 Hint: Factor in constant variables and apply the formula.
Question 2
After calculating the total operating cost, how would an increase in fuel prices impact the overall cost if operating hours are unchanged?
💡 Hint: Focus on the direct correlations between costs and operational factors.
Challenge and get performance evaluation