The original cost of an equipment is Rs.10,000/-. Its salvage value at the end of its total useful life of five years is Rs. 1,000/-. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be________________?

Related Mcqs:

1. 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__________________?

   A. Rs. 4,75,000/-
   B. Rs. 5,75,000/-
   C. Rs. 6,50,000/-
   D. Rs. 8,50,000/-

2. An earth moving equipment costs Rs. 5,00,000/- and has an estimated life of 10 years and a salvage value of Rs. 50,000/-.What uniform annual amount must be set aside at the end of each of the 10 years for replacement if the interest rate is 8% per annum and if the sinking fund factor at 8% per annum interest rate for 10 years is 0.069 ?

   A. Rs. 31050
   B. Rs. 34500
   C. Rs. 37950
   D. Rs. 50000

3. An excavator costs Rs. 20,00,000/- and has an estimated life of 8 years. It has no salvage value at the end of 8 years. The book value of the excavator at the end of 3 years using general double declining balance method is__________________?

   A. Rs. 8,43,750/-
   B. Rs. 8,75,000/-
   C. Rs. 10,50,000/-
   D. Rs. 11,56,250/-

4. A machine costs Rs. 20000 and its useful life is 8 years. The money is borrowed at 8% interest per annum. The capital recovery factor at 8% interest per annum for 8 years is 0.174. The annual equipment cost of the machine will be________________?

   A. Rs.1740
   B. Rs.3480
   C. Rs.5220
   D. Rs.6960

5. 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________________?

   A. 3.7 years
   B. 4.23 years
   C. 5 years
   D. 7.87 years

6. If the excavation of earth is done manually then it costs Rs. 10 per cum. A machine can excavate at a fixed cost of Rs. 4000 plus a variable cost of Rs. 2 per cum. The quantity of earth for which the cost of excavation by machine will be equal to the cost of manual excavation is_________________?

   A. 500 cum
   B. 1000 cum
   C. 1500 cum
   D. 2000 cum

7. A contractor has two options : Invest his money in project A or (II) : Invest his money in project B. If he decides to invest in A, for every rupee invested, he is assured of doubling his money in ten years. If he decides to invest in B, he is assured of making his money 1.5 times in 5 years. If the contractor values his money at 10% interest rate, he______________?

   A. should invest in neither of the two projects
   B. could invest in either of the two projects
   C. should invest in project A
   D. should invest in project B

8. PERT technique of network analysis is mainly useful for__________________?

   A. small projects
   B. large and complex projects
   C. research and development projects
   D. deterministic activities

9. Which one of the following is not an excavating and moving type of equipment ?

   A. Bulldozer
   B. Clam shell
   C. Scraper
   D. Dump truck

10. The most suitable type of equipment for compaction of cohesive soils is_________________?

    A. Smooth-wheeled rollers
    B. Vibratory rollers
    C. Sheep foot rollers
    D. Tampers