Practice Estimating Equivalent Uniform Annual Cost - 1.2 | 9. Uniform Series Capital Recovery Factor | Construction Engineering & Management - Vol 1
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Knowledge

1.2 - Estimating Equivalent Uniform Annual Cost

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the Capital Recovery Factor used for?

💡 Hint: Think about loan repayments and recovery of investments.

Question 2

Easy

Define Equivalent Uniform Annual Cost.

💡 Hint: Consider annual costs versus total costs.

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 primary purpose of the Capital Recovery Factor?

  • To calculate future value
  • To determine loan repayments
  • To assess project profitability

💡 Hint: Focus on financial repayments associated with loans.

Question 2

True or False: Ownership costs include depreciation, taxes, and loan repayments.

  • True
  • False

💡 Hint: Consider what costs are tied to owning a piece of equipment.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A construction company buys a bulldozer for 500,000, expecting to sell it for 50,000 after 10 years. If the interest rate is 8%, calculate the annualized cost of the bulldozer.

💡 Hint: First, calculate the capital recovery factor before plugging values into the annual cost formula.

Question 2

An equipment has an initial cost of 1,200,000 with 2% yearly increase in operating costs over 15 years. Calculate the total operating cost over its lifetime.

💡 Hint: Consider the compounding factors while calculating each year separately.

Challenge and get performance evaluation