Practice Key Points On Time Value Method (5.1) - Uniform Series Capital Recovery Factor

Practice: Key Points on Time Value Method

Lesson 5.1Uniform Series Capital Recovery Factor

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8 questions

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2 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What does the Uniform Series Capital Recovery Factor help you calculate?
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Think about budgeting for loans.
Question 2.
Define salvage value.
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Consider what the item can be sold for after use.
3Question 3.
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
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Think about capital recovery and budgeting.
4Question 4.
True or False: Depreciation is not a factor in estimating ownership costs.
- True
- False
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Remember what depreciation accounts for.
Question 5.
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.
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Track both the depreciation and the annual payments required.
Question 6.
Calculate the annual payments needed to recover 100 lakhs over 20 years at an interest rate of 6%.
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Ensure you're clear on the values for P, i, and n while applying the formula.

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