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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the uniform series capital recovery factor?
💡 Hint: Think of how loans are paid off.
Question 2
Easy
Define ownership costs.
💡 Hint: Think about what costs come with owning 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 the uniform series capital recovery factor calculate?
- Total loan amount
- Annual payment
- Initial investment
💡 Hint: Think about loan repayments.
Question 2
True or False: The present worth factor can help determine the present value of future earnings.
- True
- False
💡 Hint: Remember the role of present and future cash flows.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company wants to buy new machinery that costs $180,000. If they plan to finance the machinery over 10 years at an interest rate of 7%, determine the annual payment.
💡 Hint: Categorize all your known quantities before substitution.
Question 2
How would you utilize the concept of sinking fund to prepare for a $50,000 equipment purchase in 5 years?
💡 Hint: Consider how to grow your savings to meet the future cost.
Challenge and get performance evaluation