Practice Hourly Depreciation Calculation - 3.1 | 14. Initial Cost Analysis | Construction Engineering & Management - Vol 1
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Knowledge

3.1 - Hourly Depreciation Calculation

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the purpose of calculating hourly depreciation?

💡 Hint: Think about the implications on overall costs.

Question 2

Easy

Name the formula used to calculate annualized costs.

💡 Hint: This includes interest rates and time.

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 salvage value refer to?

  • End-of-life value
  • Initial purchase price
  • Annualized profit

💡 Hint: Think about the worth of an item after use.

Question 2

True or False: Hourly depreciation is derived from annualized costs divided by the number of hours the machine is used per year.

  • True
  • False

💡 Hint: Pay attention to the relationship between time and costs.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A contractor buys equipment worth ₹2,00,00,000. If the equipment has a lifespan of 10 years and a salvage value of ₹40,00,000, calculate the annualized cost and hourly depreciation based on average yearly use of 2500 hours.

💡 Hint: Focus on calculating the annual amounts first, then derive to hourly costs.

Question 2

Discuss how changes in the salvage value affect both annual costs and hourly depreciation. Provide examples.

💡 Hint: Examine the relationships between salvage value and depreciation calculations.

Challenge and get performance evaluation