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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the salvage value?
💡 Hint: Think about what residual value a machine might have.
Question 2
Easy
Define Equivalent Uniform Annual Cost.
💡 Hint: Remember, it makes long-term cost analysis simpler.
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 represents the salvage value of equipment?
- Initial cost
- Future resale value
- Annual depreciation
💡 Hint: It's the leftover value post-use.
Question 2
True or False: Annualizing costs assists in more accurate budgeting over time.
- True
- False
💡 Hint: Think about budgeting across multiple years.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
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.
Question 2
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.
Challenge and get performance evaluation