5.1 - Key Points on Time Value Method
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What does the Uniform Series Capital Recovery Factor help you calculate?
💡 Hint: Think about budgeting for loans.
Define salvage value.
💡 Hint: Consider what the item can be sold for after use.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Uniform Series Capital Recovery Factor allow you to determine?
💡 Hint: Think about capital recovery and budgeting.
True or False: Depreciation is not a factor in estimating ownership costs.
💡 Hint: Remember what depreciation accounts for.
Get performance evaluation
Challenge Problems
Push your limits with advanced challenges
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.
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.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.