Practice Uniform Series Present Worth Factor (2) - Uniform Series Capital Recovery Factor

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9 questions

Flashcard drill
3 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
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is the purpose of the Uniform Series Present Worth Factor?
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Think about cash flows over time.
Question 2.
Define the USPW Factor in one sentence.
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Recall the cash flow nature!
3Question 3.
What does the USPW Factor calculate?
- Future value
- Present value
- Loan amount
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Think about the purpose of the factor.
4Question 4.
True or False: The USPW Factor can be used to find loan repayment schedules?
- True
- False
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Recall the applications we discussed.
Question 5.
You have a uniform payment of $20,000 every year for 6 years. If the interest rate is 6%, calculate the present worth of these cash flows.
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Use the 6% as your rate in the USPW formula.
Question 6.
If you plan to replace equipment costing $150,000 in 5 years and expect to make annual contributions of $30,000 towards that goal, calculate how this relates to the USPW Factor.
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Focus on using the future cash flows in the USPW context.

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