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. 50000
Rs. 34500
Rs. 37950
Rs. 31050

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Construction Planning and Management
If the optimistic time, most likely time and pessimistic time for activity A are 4, 6 and 8 respectively and for activity B are 5, 5.5 and 9 respectively, then

expected time of both activities A and B are same
expected time of activity A is greater than the expected time of activity B
None of these
expected time of activity B is greater than the expected time of activity A

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Construction Planning and Management
Sinking fund is

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

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