Practice Comparison of Payback Periods for Loaders - 4.2 | 18. Depreciation Calculation | Construction Engineering & Management - Vol 1
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4.2 - Comparison of Payback Periods for Loaders

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is depreciation?

💡 Hint: Think about how old machines lose their value.

Question 2

Easy

Calculate the depreciation for a loader worth 28 lakh at a rate of 0.4.

💡 Hint: Use the formula D = rate × book value.

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 formula for calculating depreciation?

  • D = rate × initial investment
  • D = rate + book value
  • D = rate × book value

💡 Hint: Think about how we value machines over their lifespan.

Question 2

Is the economic life of a loader determined by its minimum cost?

  • True
  • False

💡 Hint: Consider the relationship between usage and cost over time.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Given a loader's purchase price of 30 lakh, a depreciation rate of 0.4, and an expected maintenance cost of 13 lakh in the first year, calculate the total annual cost for the first year. Then, discuss when it might be best to replace this loader based on cumulative costs over five years.

💡 Hint: Chart out your annual costs each year and look for patterns.

Question 2

If a loader has reached its economic life as 7 years with a cumulative cost of 30 lakh against a new loader with minimal cost estimates of 25 lakh, devise a replacement strategy and justify your recommendation considering potential operational efficiencies.

💡 Hint: Factor in both the immediate costs and long-term savings.

Challenge and get performance evaluation