7.2 - Recommended References
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Practice Questions
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What is the formula for calculating the Capital Recovery Factor?
💡 Hint: Review the formulas discussed in class.
How do you define annualized cost?
💡 Hint: Think of how we spread costs across years.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What factor do you use to convert initial costs into equivalent annual costs?
💡 Hint: Recall our definition in class.
True or False: The salvage value contributes positively to hourly depreciation calculations.
💡 Hint: Consider how depreciation is calculated.
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Challenge Problems
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You have an initial investment of ₹100,00,000. Calculate the annualized cost over 10 years at an interest rate of 5%. How does changing the interest rate to 8% affect this cost?
💡 Hint: Remember to apply the formula correctly.
You are given a machine's annualized initial costs at ₹2,00,000 and a salvage value of ₹40,000. If the hourly depreciation is calculated over 1500 annual hours, what is the depreciation rate? Explain the significance of this figure in budgeting.
💡 Hint: Focus on understanding the impact of depreciation on total operational efficiency.
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Reference links
Supplementary resources to enhance your learning experience.