Construction Planning and Management
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

Rs. 8,75,000
Rs. 10,50,000
Rs. 8,43,750
Rs. 11,56,250

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Construction Planning and Management
Sinking fund is

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
The fund for rebuilding a structure when its economic life is over
Raised to meet maintenance costs

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