4.1 - Insurance Cost Calculation
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Practice Questions
Test your understanding with targeted questions
What is the formula for calculating the annualized initial cost?
💡 Hint: Think of the components: initial cost, interest, and lifespan.
How do you calculate the insurance cost if it's 2% of an initial cost of ₹2,89,00,000?
💡 Hint: It's simply finding 2% of the total cost.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula used to calculate the annualized cost of machinery?
💡 Hint: Focus on how interest and lifespan influence costs.
True or False: The salvage value is accounted for in the total ownership cost calculation.
💡 Hint: Consider how salvage value impacts expenses.
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Challenge Problems
Push your limits with advanced challenges
You have a machine with an initial cost of ₹2,89,00,000, interest rate of 8%, and a salvage value of 20%. Calculate both the annualized initial cost and the annualized salvage value.
💡 Hint: Use the relevant formulas for annualized costs.
If you know that the total ownership cost equals ₹5759.2 per hour and it includes operator wages of ₹200, what are the total operating costs excluding the operator?
💡 Hint: Subtract operator costs from the total to find operational expenses.
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