Examveda
Examveda

A machine costs Rs. 20000 and its useful life is 8 years. The money is borrowed at 8% interest per annum. The capital recovery factor at 8% interest per annum for 8 years is 0.174. The annual equipment cost of the machine will be

A. Rs. 1740

B. Rs. 3480

C. Rs. 5220

D. Rs. 6960

Answer: Option B


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Comments ( 5 )

  1. Gitartha Borah
    Gitartha Borah :
    3 years ago

    Sinking fund factor is.174 for 8yrs at 8% per annum
    Future value = 20000
    So sinking fund to be set aside anually or the annual equipment cost = 20000×.174= 3480

  2. Pratiksha Goswami
    Pratiksha Goswami :
    3 years ago

    20000*0.174= 3480
    Ans:B

  3. DIVYA NAYAK
    DIVYA NAYAK :
    4 years ago

    A(annual cost)=P(present worth)×capital recovery factor
    A=20000×0.174
    =3480 cost.

  4. Israr Hussain
    Israr Hussain :
    4 years ago

    HOW?

  5. Dhruv Patel
    Dhruv Patel :
    4 years ago

    Kaise ?

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If to, tp and tm are the optimistic, pessimistic and most likely time estimates of an activity respectively, the expected time t of the activity will be

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