Professional Courses
Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.
Categories
Interactive Games
Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.
Typing
Memory
Math
English Adventures
Knowledge
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the initial cost of the defender?
💡 Hint: Refer to the current market value mentioned.
Question 2
Easy
Identify the annual operating cost for the challenger.
💡 Hint: It is the lower operating cost compared to the defender.
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 does EAC stand for?
- Effective Annual Cost
- Equivalent Annual Cost
- End Annual Cost
💡 Hint: Think about the acronym; what makes sense in terms of annual costs?
Question 2
Is it necessary to consider sunk costs when evaluating equipment replacement?
- True
- False
💡 Hint: Consider if historical expenses influence current financial decisions.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Given a machine with a higher salvage value but increased operating costs, analyze if a company should keep the original or replace it. Justify your decision using EAC.
💡 Hint: Compare the EACs - the lower one should guide your decision.
Question 2
If a new piece of equipment saves ₹50,000 in annual operating costs, but costs ₹1,00,000 more upfront than the existing asset, calculate the impact on EAC over 5 years.
💡 Hint: Factor in both upfront and recurring costs to justify the decision.
Challenge and get performance evaluation