2 - Salvage Value Analysis
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Practice Questions
Test your understanding with targeted questions
What is the salvage value?
💡 Hint: Think about what residual value a machine might have.
Define Equivalent Uniform Annual Cost.
💡 Hint: Remember, it makes long-term cost analysis simpler.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What represents the salvage value of equipment?
💡 Hint: It's the leftover value post-use.
True or False: Annualizing costs assists in more accurate budgeting over time.
💡 Hint: Think about budgeting across multiple years.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Given an initial cost of ₹5,00,00,000, a salvage value of ₹1,00,00,000, and an operational life of 10 years, compute the overall hourly depreciation if the equipment operates for 2000 hours annually.
💡 Hint: Calculate the annual depreciation first.
Estimate the total hourly cost of an equipment that includes ownership costs of ₹4000/hr, operating costs of ₹2000/hr and an operator's wage of ₹300/hr.
💡 Hint: Add all components for the final figure.
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