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What does CRF denote?(a) Central Research Fund(b) Central Road Fund(c) Capital Recovery Factor(d) Capital Recovery FundThis question was addressed to me in a job interview.I would like to ask this question from Design of Road Pavement topic in portion Valuation, Reports Technical and Design Data of Civil Engineering Drawing

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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