4.6 - Calculating Hourly Depreciation
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Practice Questions
Test your understanding with targeted questions
What is the formula for calculating hourly depreciation?
💡 Hint: Remember to define what A and S represent.
Explain the purpose of the uniform series capital recovery factor.
💡 Hint: Think about loan repayments.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the first step in estimating hourly depreciation?
💡 Hint: Think about the sequence of financial calculations.
The uniform series capital recovery factor is used to convert a lump-sum amount into:
💡 Hint: Recall its main functionality.
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Challenge Problems
Push your limits with advanced challenges
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.
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.
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