Practice Recommended References - 7.2 | 14. Initial Cost Analysis | Construction Engineering & Management - Vol 1
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7.2 - Recommended References

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the formula for calculating the Capital Recovery Factor?

💡 Hint: Review the formulas discussed in class.

Question 2

Easy

How do you define annualized cost?

💡 Hint: Think of how we spread costs across years.

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 factor do you use to convert initial costs into equivalent annual costs?

  • Sinking Fund Factor
  • Capital Recovery Factor
  • Discount Rate

💡 Hint: Recall our definition in class.

Question 2

True or False: The salvage value contributes positively to hourly depreciation calculations.

  • True
  • False

💡 Hint: Consider how depreciation is calculated.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

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.

Question 2

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.

Challenge and get performance evaluation