Practice Comparison of Loaders - 2 | 18. Depreciation Calculation | Construction Engineering & Management - Vol 1
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Knowledge

2 - Comparison of Loaders

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Calculate the first-year depreciation of a loader purchased for 30 lakh at a depreciation rate of 40%.

💡 Hint: Use the formula: Depreciation = Purchase Price x Depreciation Rate.

Question 2

Easy

What does book value refer to?

💡 Hint: Consider what happens to an asset’s value over time.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the first-year depreciation for a loader purchased at 40 lakh with a depreciation rate of 0.4?

  • 16 lakh
  • 12 lakh
  • 10 lakh

💡 Hint: Think about the percentage of the purchase price.

Question 2

True or False: Annual costs include both operating costs and depreciation.

  • True
  • False

💡 Hint: Recall how we calculate annual costs.

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Challenge Problems

Push your limits with challenges.

Question 1

You have a loader that costs 60 lakh and depreciates at 30% in its first year. Calculate the book value after one year and the associated first-year costs if operating costs are 20 lakh.

💡 Hint: Remember to calculate depreciation before finding the book value.

Question 2

Compare two loaders: Loader A has an average annual cumulative cost of 22 lakh over five years. Loader B has an average of 20 lakh. Which one would you recommend replacing, and why?

💡 Hint: Consider both the average operational and annual costs.

Challenge and get performance evaluation