Practice Intuitive Method and its Comparison - 5.1 | 18. Depreciation Calculation | Construction Engineering & Management - Vol 1
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5.1 - Intuitive Method and its Comparison

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the depreciation for a machine costing 28 lakh with a rate of 40%?

💡 Hint: Multiply the cost by the depreciation rate.

Question 2

Easy

How is book value at the end of the first year calculated?

💡 Hint: Book value = Cost - Depreciation.

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 costing 28 lakh at a 40% rate?

  • 11,20,000
  • 10,00,000
  • 12,50,000

💡 Hint: Use the formula: Depreciation = Cost x Rate.

Question 2

The economic life of a machine is determined when...

  • True
  • False

💡 Hint: Consider the trends of costs over the years.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

If a company has a loader with a current value of 10,50,000 after several years of depreciation, calculate the expected savings if a new loader that costs 15 lakh will reduce operating costs by 20% annually over 5 years.

💡 Hint: Account for both the depreciation of the new and old loaders in the overall cost-benefit analysis.

Question 2

Analyze the trend in cumulative costs for a machine over four years if the annual costs are 25,00,000; 20,50,000; 15,00,000; 22,50,000 respectively. When should the decision to replace be expected based on minimizing those cumulative costs?

💡 Hint: Plot the costs on a graph to visualize the trend for clearer analysis.

Challenge and get performance evaluation