Practice Dr. James Douglas Guidelines for Replacement - 2.2 | 18. Depreciation Calculation | Construction Engineering & Management - Vol 1
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2.2 - Dr. James Douglas Guidelines for Replacement

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is depreciation?

💡 Hint: It pertains to the worth of machines as they age.

Question 2

Easy

How do you calculate the first year’s depreciation for a machine costing 28 lakh at a rate of 0.4?

💡 Hint: Think of it as a percentage of the cost.

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 step in determining the replacement timing of machinery?

  • Calculating operating costs
  • Assessing depreciation
  • Evaluating potential profits

💡 Hint: Think about value loss.

Question 2

True or False: The minimum cost method suggests replacing equipment when future costs exceed cumulative costs of the new machine.

  • True
  • False

💡 Hint: Focus on cost comparisons.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

If a loader depreciates at a steady rate and becomes less productive each year, calculate the depreciation over 5 years. If its original price was 30 lakh, how would you expect to see its value after each year?

💡 Hint: Track the yearly decrease using cumulative depreciation.

Question 2

Given a new machine's minimum average annual cumulative cost is 16 lakh, and the current machine is projected to cost 18 lakh next year, is it time to consider replacement? Discuss the implications.

💡 Hint: Consider the cost-benefit balance in machine longevity.

Challenge and get performance evaluation