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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for calculating annualized costs?
💡 Hint: Look for the capital recovery factor.
Question 2
Easy
What does salvage value refer to?
💡 Hint: Consider what an asset is worth at the end.
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 is the annualized cost of an initial investment of ₹3,00,00,000 at 7% over 10 years?
- ₹37,01,852
- ₹40,18,661
- ₹42,50,000
💡 Hint: Plug in the values into the formula to calculate.
Question 2
True or False: The sinking fund factor is used to calculate the annual contribution needed to reach a certain amount.
- True
- False
💡 Hint: Consider what a sinking fund does over time.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company invests in equipment costing ₹50,00,000 with a salvage value of ₹5,00,000 after 15 years. Calculate the annualized cost at 8% interest including ownership costs of ₹1,00,000 per year.
💡 Hint: Ensure to use the correct values for I, i, and n.
Question 2
Given an initial cost of ₹60,00,000 and a total salvage value of 10% after 12 years at 7% interest, compute the hourly tax rate if used for 2,400 hours annually.
💡 Hint: Break down the components before calculating.
Challenge and get performance evaluation