Practice Adding Purchase Price And Operating Costs (2.1)

Practise this section

9 questions

Flashcard drill
4 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What does EAC stand for?
Show hintHide hint
Think about cost over time.
Question 2.
What is the purpose of calculating the present worth?
Show hintHide hint
Consider cash flows happening in different years.
3Question 3.
What does EAC stand for?
- Annual Cost Equivalent
- Equivalent Annual Cost
- Cost of Asset Management
Show hintHide hint
Think about what it means in context of annual expenses.
4Question 4.
True or False: The USCRF can only be applied to operating costs.
- True
- False
Show hintHide hint
Consider all the factors we've discussed.
Question 5.
A machine costs 10,000,000 with a 5% interest rate and a USCRF of 0.1. Calculate the EAC.
Show hintHide hint
Follow the steps we used in class.
Question 6.
If the operating cost is 300,000 for 3 years, what is the present worth at a 10% interest rate?
Show hintHide hint
Recall how we calculated present worth for operating costs.

5 more questions in this section. Enroll free to practise them all.