4.1 - Input Data for Ownership Cost Calculation
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Practice Questions
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What is the capital recovery factor used for?
💡 Hint: Think about loan repayments and investment recovery.
Define salvage value in the context of equipment ownership.
💡 Hint: Consider what an item might sell for after years of use.
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Interactive Quizzes
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What does the capital recovery factor determine?
💡 Hint: Think about how loans are structured.
Is the uniform series present worth factor useful for calculating present values?
💡 Hint: Consider what the term 'present worth' implies.
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Challenge Problems
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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.
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.
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