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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The normal time required for the completion of project in the above problem is
A. 9 days
B. 13 days
C. 14 days
D. 19 days
A. $$\frac{{{{\text{t}}_{\text{o}}} + 3{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{2}$$
B. $$\frac{{{{\text{t}}_{\text{o}}} + 3{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{3}$$
C. $$\frac{{{{\text{t}}_{\text{o}}} + 4{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{4}$$
D. $$\frac{{{{\text{t}}_{\text{o}}} + 4{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{5}$$
E. $$\frac{{{{\text{t}}_{\text{o}}} + 4{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{6}$$
A construction schedule is prepared after collecting
A. Number of operations
B. Output of labour
C. Output of machinery
D. All the above
A. 3.5 and $$\frac{5}{6}$$
B. 5 and $$\frac{{25}}{{36}}$$
C. 3.5 and $$\frac{{25}}{{36}}$$
D. 4 and $$\frac{5}{6}$$
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
20000*0.174= 3480
Ans:B
A(annual cost)=P(present worth)×capital recovery factor
A=20000×0.174
=3480 cost.
HOW?
Kaise ?