‘P’ is the investment made on an equipment, ‘S’ is its salvage value and ‘n is the life of the equipment in years. The depreciation for Rath year by the sum-of year‟s digit method will be____________________?

Related Mcqs:

1. A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs _____________?

   A. 40,096 B. 43,196 C. 53,196 D. 60,196...

2. A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs______________?

   A. 300 B. 600 C. 800 D. 1000...

3. The depreciation during the year ‘n’, in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage ‘N’ to the ?

   A. Initial cost B. Book value at the end of (n – 1)th year C. Depreciation during the (n – 1)th year D. Difference between initial cost and salvage value...

4. Functional depreciation of an equipment is the measure of decrease in its value due to its _________________?

   A. Ageing B. Wear and tear C. Obsolescence D. Breakdown or accident...

5. Annual depreciation costs are constant, when the ______________ method of depreciation calculation is used ?

   A. Declining balance B. Straight line C. Sum of the years digit D. None of these...

6. Annual depreciation cost are not constant when, the _____________ method of depreciation calculation is used ?

   A. Straight line B. Sinking fund C. Present worth D. Declining balance...

7. The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is__________________?

   A. 15% B. 10% C. 1.5% D. 150%...

8. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be ________________?

   A. 1000 (1 + 0.1/4)20 B. 1000 (1 + 0.1)20 C. 1000 (1 + 0.1/4)5 D. 1000 (1 + 0.1/2)5...

9. Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to_________________?

   A. 0.1 B. 0.6 C. 0.2 D. 0.8...

10. Equipment installation cost in a chemical process plant ranges from _______________ percent of the purchased equipment cost ?

    A. 10 to 20 B. 35 to 45 C. 55 to 65 D. 70 to 80...