3.1 - Hourly Depreciation Calculation
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Practice Questions
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What is the purpose of calculating hourly depreciation?
💡 Hint: Think about the implications on overall costs.
Name the formula used to calculate annualized costs.
💡 Hint: This includes interest rates and time.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does the salvage value refer to?
💡 Hint: Think about the worth of an item after use.
True or False: Hourly depreciation is derived from annualized costs divided by the number of hours the machine is used per year.
💡 Hint: Pay attention to the relationship between time and costs.
1 more question available
Challenge Problems
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A contractor buys equipment worth ₹2,00,00,000. If the equipment has a lifespan of 10 years and a salvage value of ₹40,00,000, calculate the annualized cost and hourly depreciation based on average yearly use of 2500 hours.
💡 Hint: Focus on calculating the annual amounts first, then derive to hourly costs.
Discuss how changes in the salvage value affect both annual costs and hourly depreciation. Provide examples.
💡 Hint: Examine the relationships between salvage value and depreciation calculations.
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