4.2 - Using Uniform Series Capital Recovery Factor
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Practice Questions
Test your understanding with targeted questions
What does USCRF stand for?
💡 Hint: Think about the key roles in finance and capital recovery.
What is the significance of USPW?
💡 Hint: Recall how each factor relates to the time value of money.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the main purpose of using the USCRF?
💡 Hint: Think about how it's applied in financial transactions regarding equipment.
True or False: USPW is used to calculate the future value of cash flows.
💡 Hint: Recall what each factor is designed to do.
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Challenge Problems
Push your limits with advanced challenges
A company buys machinery worth $120,000, with an expected life of 8 years and a resale value of $20,000. Calculate the annualized cost using USCRF.
💡 Hint: Start with the net initial cost and apply the USCRF for annualization.
You plan to withdraw $15,000 per year for 20 years from an investment. If you want the present value of these withdrawals with an interest rate of 5%, how much should you invest today?
💡 Hint: Think about how you can derive today’s cash reduced from future expectations.
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