Practice Estimating Ownership Cost Using Time Value Concepts - 4 | 9. Uniform Series Capital Recovery Factor | Construction Engineering & Management - Vol 1
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the purpose of the Capital Recovery Factor?

💡 Hint: Think about loan repayments over time.

Question 2

Easy

What does Ownership Cost refer to?

💡 Hint: Consider what expenses are involved in running equipment.

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 CRF help you determine in financial terms?

  • Weekly payment amounts
  • Annual cash flows
  • Monthly costs

💡 Hint: Think about the uniform amount it provides.

Question 2

True or False: The Present Worth Factor can help determine how much cash you need today to generate future cash flows.

  • True
  • False

💡 Hint: Remember what the factor represents.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A drill costs ₹150 lakhs, has an estimated life of 15 years, and a salvage value of ₹25 lakhs. Calculate the annualized ownership cost including a tax rate of 3%, storage of 1.5% of the purchase price, and operating hours of 3000 per year.

💡 Hint: Remember to factor in all cost percentages to the annualized amount.

Question 2

If a company wishes to earn ₹2 lakhs annually from their investment for the next 20 years at an interest rate of 5%, what is the present worth needed now?

💡 Hint: Refer back to the formula for calculating present worth.

Challenge and get performance evaluation