Construction Planning and Management MCQs

A tractor shovel has a purchase price of Rs. 4.7 lacs and could save the organization an amount of rupees one lac per year on operating costs. The salvage value after the amortization period is 10% of the purchase price. The capital recovery period will be________________?

by
A. 3.7 years
B. 4.23 years
C. 5 years
D. 7.87 years
✅ The correct answer is option B.

A machine is purchased for Rs. 10,000,00/- and has an estimated life of 10 years. The salvage value at the end of 10 years is Rs. 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation is__________________?

by
A. Rs. 4,75,000/-
B. Rs. 5,75,000/-
C. Rs. 6,50,000/-
D. Rs. 8,50,000/-
✅ The correct answer is option B.