Construction Planning and Management
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?

Rs. 34500
Rs. 37950
Rs. 31050
Rs. 50000

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Construction Planning and Management
Sinking fund is

The fund for rebuilding a structure when its economic life is over
The total sum to be paid to the municipal authorities by the tenants
A part of the money kept in reserve for providing additional structures and structural modifications
Raised to meet maintenance costs

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Construction Planning and Management
Free float is mainly used to

Identify the activities which can be delayed without affecting the total float of either the preceding or succeeding activities
Establish priorities
Identify the activities which can be delayed without affecting the total float of preceding activity
Identify the activities, which can be delayed without affecting the total float of succeeding activity

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