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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 the equivalent annual cost?
💡 Hint: Look for the variables related to initial cost, interest rate, and lifespan.
Question 2
Easy
Define salvage value.
💡 Hint: Think about the asset's value after it is no longer needed for its primary use.
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 the capital recovery factor allow us to calculate?
- Hourly usage costs
- Equivalent annual costs
- Annual depreciation
💡 Hint: Focus on how costs are converted into yearly formats.
Question 2
True or False: Salvage value is irrelevant in cost analysis.
- True
- False
💡 Hint: Think about the significance of any potential resale value.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Calculate the total component costs for a machine with an initial cost of ₹ 5,00,000, a salvage value of ₹ 80,000, and an interest rate of 10% over 5 years. What will be the equivalent annual cost?
💡 Hint: Don’t forget to solve each part step-by-step!
Question 2
Critically analyze how operational and ownership costs impact the decision-making process for a project investment. Discuss several factors.
💡 Hint: Consider how different costs affect the long-term investment returns.
Challenge and get performance evaluation