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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 investment recovery.
Question 2
Easy
Define salvage value in the context of equipment ownership.
💡 Hint: Consider what an item might sell for after years of use.
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 the capital recovery factor determine?
- Loan repayment schedule
- Total machine cost
- Annual revenue growth
💡 Hint: Think about how loans are structured.
Question 2
Is the uniform series present worth factor useful for calculating present values?
- True
- False
💡 Hint: Consider what the term 'present worth' implies.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company purchases a machine for ₹1,000,000 with an estimated salvage value of ₹150,000 after 8 years. Calculate the annualized cost using a 10% interest rate.
💡 Hint: Don’t forget to adjust for salvage value in your calculations.
Question 2
Discuss the impact of different interest rates on ownership cost calculations. How would a higher rate change your annualized costs?
💡 Hint: Consider how interest influences payments over time.
Challenge and get performance evaluation