3 - Depreciation Calculation
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Practice Questions
Test your understanding with targeted questions
Calculate the annualized cost if the initial cost is ₹2,50,00,000 with an interest rate of 7% over 10 years.
💡 Hint: Use the formula for annualizing cost with interest and term.
What is salvage value if the initial cost is ₹1,00,00,000 and it depreciates to 15% at the end of its life?
💡 Hint: Calculate 15% of the initial cost.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Initial Cost represent?
💡 Hint: Think about the purchase price of the machinery.
True or False: Salvage Value is not relevant for depreciation calculations.
💡 Hint: Consider how asset depreciation works over time.
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Challenge Problems
Push your limits with advanced challenges
If a machine costs ₹5,00,00,000, with an 8% salvage value over 15 years, calculate the total hourly ownership cost assuming operational hours of 2000/year.
💡 Hint: Break it into smaller parts to compute each cost.
Consider a machine with an initial cost of ₹3,24,00,000 and a salvage value of 20%. How would you compute the hourly depreciation given it’s used 1600 hours each year?
💡 Hint: Combine your understanding of annual cost and salvage value precisely into this calculation.
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