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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 hourly depreciation?
💡 Hint: Remember to define what A and S represent.
Question 2
Easy
Explain the purpose of the uniform series capital recovery factor.
💡 Hint: Think about loan repayments.
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 first step in estimating hourly depreciation?
- Calculate Annualized Cost
- Calculate Salvage Value
- Find Purchase Price
💡 Hint: Think about the sequence of financial calculations.
Question 2
The uniform series capital recovery factor is used to convert a lump-sum amount into:
- True
- False
💡 Hint: Recall its main functionality.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A contractor owns a machine with a purchase price of ₹85,00,000, a salvage value of ₹5,00,000, and expects to operate it for 10 years at 2000 hours a year. Calculate the hourly depreciation.
💡 Hint: Break down the calculation into parts.
Question 2
If a machine incurs additional yearly costs from insurance at 3%, tax at 2.5%, and storage at 1% on a cost after tire deductions, how would the total hourly cost calculation be affected?
💡 Hint: Each cost needs to be carefully adjusted before calculations.
Challenge and get performance evaluation