Practice Depreciation Calculation - 3 | 14. Initial Cost Analysis | Construction Engineering & Management - Vol 1
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

Typing
Memory
Math
English Adventures
Knowledge

3 - Depreciation Calculation

Enroll to start learning

You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Calculate the annualized cost if the initial cost is ₹2,50,00,000 with an interest rate of 7% over 10 years.

💡 Hint: Use the formula for annualizing cost with interest and term.

Question 2

Easy

What is salvage value if the initial cost is ₹1,00,00,000 and it depreciates to 15% at the end of its life?

💡 Hint: Calculate 15% of the initial 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 does the Initial Cost represent?

  • The total payment for the asset
  • Future revenue
  • Operational costs

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

Question 2

True or False: Salvage Value is not relevant for depreciation calculations.

  • True
  • False

💡 Hint: Consider how asset depreciation works over time.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

If a machine costs ₹5,00,00,000, with an 8% salvage value over 15 years, calculate the total hourly ownership cost assuming operational hours of 2000/year.

💡 Hint: Break it into smaller parts to compute each cost.

Question 2

Consider a machine with an initial cost of ₹3,24,00,000 and a salvage value of 20%. How would you compute the hourly depreciation given it’s used 1600 hours each year?

💡 Hint: Combine your understanding of annual cost and salvage value precisely into this calculation.

Challenge and get performance evaluation