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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What does the Uniform Series Capital Recovery Factor help you calculate?
💡 Hint: Think about budgeting for loans.
Question 2
Easy
Define salvage value.
💡 Hint: Consider what the item can be sold for after 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 Uniform Series Capital Recovery Factor allow you to determine?
- The total cost of a loan
- Equal annual payments to recover capital
- The future value of an investment
💡 Hint: Think about capital recovery and budgeting.
Question 2
True or False: Depreciation is not a factor in estimating ownership costs.
- True
- False
💡 Hint: Remember what depreciation accounts for.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company buys a machine for 60 lakhs at an interest rate of 10% and expects to sell it for 8 lakhs after 5 years. Calculate the annual depreciation and the annualized cost of ownership.
💡 Hint: Track both the depreciation and the annual payments required.
Question 2
Calculate the annual payments needed to recover 100 lakhs over 20 years at an interest rate of 6%.
💡 Hint: Ensure you're clear on the values for P, i, and n while applying the formula.
Challenge and get performance evaluation