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.1.>1.-Q
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Salvage value 200,000 0 , ?- '-'~
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Economic life 8 years 4 years
Suppose that the salvage value of alternative 2 is known with certainty. By how much ,~
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f' would the estimate of salvage value for alternative 1 have to vary so that the initial
decision based on the data above would be reversed? The minimum acceptable rate of
return is 15 percent. (7marks)
/Q. 4 The estimation team of construction company has estimated the cost of an.
. upcoming project to be Rs. 9 crores. If the mark up is 10% on the bid price what is the
bid price? (2 marks)
2 Estimate the average number of staff required in a month for a project of Rs. 50
Crores to be completed in 10 months time if the company expects the productivity of
staff to be Rs. 10 Lakhs every month. (2 marks)
Q 6. An equipment which has a book value of 5 Lakhs has been mobilized at site. lfthe
annual depreciation rate works out to be 24% and the equipment is needed for 10 months
what would be the book value of equipment at the time of demobilization and what is the
amount of depreciation during 10 months period. Assume no salvage value. (2 marks)
VQ 7 Expand the following:
(l)V AT (2)WCT (3)CAR Policy (4)BG (5)POA (6) RFQ (3 marks)
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