Practice Annualized Salvage Value Calculation - 2.2 | 14. Initial Cost Analysis | Construction Engineering & Management - Vol 1
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Knowledge

2.2 - Annualized Salvage Value Calculation

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is salvage value?

💡 Hint: Think of it as the amount you get back after using an asset.

Question 2

Easy

What is the formula for annualized initial cost?

💡 Hint: Remember what each symbol stands for.

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 use of the salvage value in financial calculations?

  • It determines the repair costs
  • It helps in calculating depreciation
  • It indicates future income

💡 Hint: Think about how you account for the value left after using an asset.

Question 2

True or False: Annualized costs help estimate budget requirements over time.

  • True
  • False

💡 Hint: Consider if knowing yearly expenses makes planning easier.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

You are managing a fleet of trucks. One truck costs ₹50,00,000, with an expected salvage value of ₹5,00,000 and a useful life of 10 years. Calculate its annualized total cost assuming an average interest rate of 8%.

💡 Hint: Make sure you handle both values in your calculations.

Question 2

If the total ownership costs include additional factors like maintenance costs which are 10% of the initial price, calculate the annual maintenance for initial costs of ₹120,00,000.

💡 Hint: Calculate percentages carefully!

Challenge and get performance evaluation