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What does CRF denote?(a) Central Research Fund(b) Central Road Fund(c) Capital Recovery Factor(d) Capital Recovery Fund |
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Answer» Right answer is (c) Capital Recovery Factor Best explanation: The first cost of a capital improvement is converted into equivalent annual cost which is called capital recovery factor. It is the ratio of a constant annuity to the present value of receiving that annuity for a given length of time. This is related to the annuity formula, which gives the present value in terms of the annuity, the interest rate, and the number of annuities. |
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