During its forward movement, the blade cuts the ground and the loosened earth collected in the body of scraper. When the scraper is fully loaded, it is raised above ground d taken to the site of dumping. The earth from the scarper is than taken out by opening the bottom of it and the earth is laid in layer of required thickness.
Reinforced Cement Concrete and Bar Bending ScheduleKailash Chander
Reinforced Cement Concrete
Bar Bending Schedule
Steel
Cutting length, type of steel, amchorage length, development length, lap length, circular columns,
During its forward movement, the blade cuts the ground and the loosened earth collected in the body of scraper. When the scraper is fully loaded, it is raised above ground d taken to the site of dumping. The earth from the scarper is than taken out by opening the bottom of it and the earth is laid in layer of required thickness.
Reinforced Cement Concrete and Bar Bending ScheduleKailash Chander
Reinforced Cement Concrete
Bar Bending Schedule
Steel
Cutting length, type of steel, amchorage length, development length, lap length, circular columns,
CONSTRUCTION PROJECT PLANING
WHAT IS CONSTRUCTION PLANNING
5 STEPS TO THE PERFECT CONSTRUCTION PLANNING PROCESS
PRE TENDER PLANNING
PRE CONTRACT PLANNING
ROLE OF CLIENT
ROLE OF CONTRACTOR
PROCESS OF DEVELOPMENT OF PLANS
PLANNING A PROJECT
INTRODUCTION TO SCHEDULING
WORK BREAKDOWN STRUCTURE
BAR CHARTS (GANTT CHARTS)
NETWORK TECHNIQUES
ACTIVITY-ON-ARROW NETWORK
DUMMY ACTIVITIES
DANGLING ACTIVITY
CYCLE IN NETWORK
PRECEDENCE NETWORKS
TIME ESTIMATES
MILESTONES IN PROJECT
TIME ANALYSIS
CRITICAL PATH, SLACK AND FLOAT
NETWORK ANALYSIS AND BAR CHART
WHAT IS NETWORK
PERT / CPM Techniques
TERMS USED IN A NETWORK
RULES OF NETWORK CONSTRUCTION
NETWORK SYMBOLS
Introduction to Advanced Construction EquipmentsATUL DONGRE
Study of different categories of construction equipment used conventionally with reference to available types and their types and their capabilities, operations and factors affecting their performance.
Earthmoving and other hauling equipment
Drilling and blasting equipment
Pile driving equipment
Pumping equipment (for water as well as concrete), applications of air compressor.
Dewatering techniques for trenches, tunnels.
Stone crushing equipment.
CONSTRUCTION PROJECT PLANING
WHAT IS CONSTRUCTION PLANNING
5 STEPS TO THE PERFECT CONSTRUCTION PLANNING PROCESS
PRE TENDER PLANNING
PRE CONTRACT PLANNING
ROLE OF CLIENT
ROLE OF CONTRACTOR
PROCESS OF DEVELOPMENT OF PLANS
PLANNING A PROJECT
INTRODUCTION TO SCHEDULING
WORK BREAKDOWN STRUCTURE
BAR CHARTS (GANTT CHARTS)
NETWORK TECHNIQUES
ACTIVITY-ON-ARROW NETWORK
DUMMY ACTIVITIES
DANGLING ACTIVITY
CYCLE IN NETWORK
PRECEDENCE NETWORKS
TIME ESTIMATES
MILESTONES IN PROJECT
TIME ANALYSIS
CRITICAL PATH, SLACK AND FLOAT
NETWORK ANALYSIS AND BAR CHART
WHAT IS NETWORK
PERT / CPM Techniques
TERMS USED IN A NETWORK
RULES OF NETWORK CONSTRUCTION
NETWORK SYMBOLS
Introduction to Advanced Construction EquipmentsATUL DONGRE
Study of different categories of construction equipment used conventionally with reference to available types and their types and their capabilities, operations and factors affecting their performance.
Earthmoving and other hauling equipment
Drilling and blasting equipment
Pile driving equipment
Pumping equipment (for water as well as concrete), applications of air compressor.
Dewatering techniques for trenches, tunnels.
Stone crushing equipment.
Construction equipment need and factors-nrcnarayanch1979
Need of construction, standard equipment, special equipment,Depreciation cost and methods, Factors affecting selection of CE, Factors affecting cost of owning and operating equipment, Factors affecting performance of CE.
Valuation - Estimation, Costing and Valuation EngineeringShanmugasundaram N
Definitions – Various types of valuations – Valuation methods - Necessity – Capitalised value – Depreciation – Escalation – Valuation of land – Buildings – Calculation of Standard rent – Mortgage – Lease
Meaning
Features of depreciation
Causes of depreciation
Need & importance of depreciation
Factors determining the amount of depreciation
Methods of allocating depreciation
Illustration
Exercise
Methods of charging Depreciation
There are many methods of applying depreciation, some of the main methods are as follows:
(1) Fixed Instalment Method / Straight Line Method
(2) Written Down Value / Diminishing Balance Method
(3) Annuity Method
(4) Depreciation Fund Method
(5) Insurance Policy Method
(6) Revaluation Method
(7) Depletion Unit or Production Unit Method
(8) Machine Hour Method
(9) The sum of the years Digits Method
(10) The use or Mileage Method
(11) Group Depreciation Method
Here we will study only fixed installment method and amortizing method, which are most popular.
Straight Line Method or Fixed Instalment Method
There are many names of this method, such as—
(i) Straight Line Method,
(ii) Original Cost Method,
(iii) Equal Instalment Method,
(iv) Fixed Instalment Method. Fixed Instalment Method. Under this method, depreciation is calculated at a fixed percentage on the original cost of the asset every year. Obviously, there will be the same amount of depreciation each year. That is why it is called a fixed instalment or ‘prime cost’ method. If the depreciation is marked on the graph paper and all the points are joined then a straight line will be formed. That’s why it is called ‘straight line method’ or straight line method.
Valuation is the technique of estimation or determining the fair price or value of property such as building, a factory, other engineering structures of various types, land etc.
By valuation the present value of a property is defined. The present value of property may be decided by its selling price, or income or rent it may fetch.
The value of property depends on its structure, life, maintenance, location, bank interest, etc.
Cost means original cost of construction of purchase.
.
Final project report on grocery store management system..pdfKamal Acharya
In today’s fast-changing business environment, it’s extremely important to be able to respond to client needs in the most effective and timely manner. If your customers wish to see your business online and have instant access to your products or services.
Online Grocery Store is an e-commerce website, which retails various grocery products. This project allows viewing various products available enables registered users to purchase desired products instantly using Paytm, UPI payment processor (Instant Pay) and also can place order by using Cash on Delivery (Pay Later) option. This project provides an easy access to Administrators and Managers to view orders placed using Pay Later and Instant Pay options.
In order to develop an e-commerce website, a number of Technologies must be studied and understood. These include multi-tiered architecture, server and client-side scripting techniques, implementation technologies, programming language (such as PHP, HTML, CSS, JavaScript) and MySQL relational databases. This is a project with the objective to develop a basic website where a consumer is provided with a shopping cart website and also to know about the technologies used to develop such a website.
This document will discuss each of the underlying technologies to create and implement an e- commerce website.
Industrial Training at Shahjalal Fertilizer Company Limited (SFCL)MdTanvirMahtab2
This presentation is about the working procedure of Shahjalal Fertilizer Company Limited (SFCL). A Govt. owned Company of Bangladesh Chemical Industries Corporation under Ministry of Industries.
Sachpazis:Terzaghi Bearing Capacity Estimation in simple terms with Calculati...Dr.Costas Sachpazis
Terzaghi's soil bearing capacity theory, developed by Karl Terzaghi, is a fundamental principle in geotechnical engineering used to determine the bearing capacity of shallow foundations. This theory provides a method to calculate the ultimate bearing capacity of soil, which is the maximum load per unit area that the soil can support without undergoing shear failure. The Calculation HTML Code included.
About
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
Technical Specifications
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
Key Features
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface
• Compatible with MAFI CCR system
• Copatiable with IDM8000 CCR
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
Application
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
Explore the innovative world of trenchless pipe repair with our comprehensive guide, "The Benefits and Techniques of Trenchless Pipe Repair." This document delves into the modern methods of repairing underground pipes without the need for extensive excavation, highlighting the numerous advantages and the latest techniques used in the industry.
Learn about the cost savings, reduced environmental impact, and minimal disruption associated with trenchless technology. Discover detailed explanations of popular techniques such as pipe bursting, cured-in-place pipe (CIPP) lining, and directional drilling. Understand how these methods can be applied to various types of infrastructure, from residential plumbing to large-scale municipal systems.
Ideal for homeowners, contractors, engineers, and anyone interested in modern plumbing solutions, this guide provides valuable insights into why trenchless pipe repair is becoming the preferred choice for pipe rehabilitation. Stay informed about the latest advancements and best practices in the field.
The Benefits and Techniques of Trenchless Pipe Repair.pdf
Construction equipment management chapter 4
1. University
University
Madawalabu
Madawalabu
Construction Equipment and Plant Management
COTM 4202
Lecture by
Lecture by:
: Andualem
Andualem Endris
Endris (
(M.Sc
M.Sc)
)
andu0117@yahoo.com
andu0117@yahoo.com
School of Engineering,
School of Engineering,
Construction Technology & Management
Construction Technology & Management D
Department
epartment
2. A construction company can acquire a construction
plant and equipment through
Cash or outright purchase
Renting
Leasing
A construction company can acquire a construction
plant and equipment through
Cash or outright purchase
Renting
Leasing
February 2, 2019 2
COTM 4202
3. Buying or financing equipment is most sensible if
the equipment is essential to your core fleet and
expected to provide reliable service for a long time.
If you decide it's worth the large outlay of funds
to buy or finance equipment, you'll find owning
equipment can provide long-term benefits.
Buying or financing equipment is most sensible if
the equipment is essential to your core fleet and
expected to provide reliable service for a long time.
If you decide it's worth the large outlay of funds
to buy or finance equipment, you'll find owning
equipment can provide long-term benefits.
February 2, 2019 3
COTM 4202
4. Renting entails a short-term agreement or contract to use
capital equipment weekly or monthly, with the rental rate
decreasing as the term lengthens.
Following are some other popular reasons for renting
equipment:
• To fill in for peak periods, special projects, or broken
machinery
• To try out equipment before buying or leasing it
• To lessen the risk of purchasing costly equipment that won’t
be needed later
Renting entails a short-term agreement or contract to use
capital equipment weekly or monthly, with the rental rate
decreasing as the term lengthens.
Following are some other popular reasons for renting
equipment:
• To fill in for peak periods, special projects, or broken
machinery
• To try out equipment before buying or leasing it
• To lessen the risk of purchasing costly equipment that won’t
be needed later
February 2, 2019 4
COTM 4202
5. Leasing can be an attractive option if you use the
equipment frequently but don’t have the resources to
purchase equipment outright or make an adequate
down payment.
However, leasing carries higher interest rates and
contractors usually are responsible for the insurance
and personal property taxes on the equipment being
leased.
Leasing can be an attractive option if you use the
equipment frequently but don’t have the resources to
purchase equipment outright or make an adequate
down payment.
However, leasing carries higher interest rates and
contractors usually are responsible for the insurance
and personal property taxes on the equipment being
leased.
February 2, 2019 5
COTM 4202
6. • The Plant, equipment and tools used in construction
operations are priced in the following three categories
1. Small tools and consumables
2. Equipment usually shared by a number of work
activities
3. Equipment used for specific tasks
• Total equipment cost comprises two separate
components
Ownership cost
Operating cost
• The Plant, equipment and tools used in construction
operations are priced in the following three categories
1. Small tools and consumables
2. Equipment usually shared by a number of work
activities
3. Equipment used for specific tasks
• Total equipment cost comprises two separate
components
Ownership cost
Operating cost
February 2, 2019 6
COTM 4202
7. Ownership costs are fixed costs. Almost all of these costs are
annual in nature and include:
Initial Cost
Depreciation
Investment (Interest) Cost
Insurance, Tax and Storage Cost
Ownership costs are fixed costs. Almost all of these costs are
annual in nature and include:
Initial Cost
Depreciation
Investment (Interest) Cost
Insurance, Tax and Storage Cost
February 2, 2019 7
COTM 4202
8. On an average, initial cost makes up about 25%
of the total cost invested during the equipment’s useful
life. This cost is incurred for getting equipment into
contractor’s yard, or construction site, and having the
equipment ready for operation. Many kinds of
ownership and operating costs are calculated using
initial cost as a basis, and normally this cost can be
calculated accurately. Initial cost consists of the
following items:
• Price at Factory + extra equipment + sales tax
• Cost of shipping
• Cost of assembly and erection
On an average, initial cost makes up about 25%
of the total cost invested during the equipment’s useful
life. This cost is incurred for getting equipment into
contractor’s yard, or construction site, and having the
equipment ready for operation. Many kinds of
ownership and operating costs are calculated using
initial cost as a basis, and normally this cost can be
calculated accurately. Initial cost consists of the
following items:
• Price at Factory + extra equipment + sales tax
• Cost of shipping
• Cost of assembly and erection
February 2, 2019 8
COTM 4202
9. • The decline in market value of a piece of equipment due
to age, wear, deterioration and obsolescence.
• In the appraisal of depreciation, some factors are
explicit while other factors have to be estimated.
• Generally the asset costs are known which include:
• Initial cost: The amount needed to acquire the equipment
• Useful life: The number of years it is expected to be of utility
value
• Salvage value: The expected amount the asset will be sold at
the end of its useful life
• The decline in market value of a piece of equipment due
to age, wear, deterioration and obsolescence.
• In the appraisal of depreciation, some factors are
explicit while other factors have to be estimated.
• Generally the asset costs are known which include:
• Initial cost: The amount needed to acquire the equipment
• Useful life: The number of years it is expected to be of utility
value
• Salvage value: The expected amount the asset will be sold at
the end of its useful life
February 2, 2019 9
COTM 4202
10. • How ever, there is always some uncertainty about the
exact length of the useful life of the asset and about the
precise amount of salvage value, which will be realized
when the asset is disposed.
• The depreciation methods are:
• Straight line method
• Sum of years digit method
• Declining balance method
• How ever, there is always some uncertainty about the
exact length of the useful life of the asset and about the
precise amount of salvage value, which will be realized
when the asset is disposed.
• The depreciation methods are:
• Straight line method
• Sum of years digit method
• Declining balance method
February 2, 2019 10
COTM 4202
11. It is the simplest to understand as it makes the basis
assumption that the equipment will lose the same amount
of value in every year of its useful life until it reaches its
salvage value. The depreciation in a given year can be
expressed by the following equation
Dn = (C – S) / N
Where Dn = Depreciation in year n
C = The initial cost
S = The salvage value
N = The useful life (years)
It is the simplest to understand as it makes the basis
assumption that the equipment will lose the same amount
of value in every year of its useful life until it reaches its
salvage value. The depreciation in a given year can be
expressed by the following equation
Dn = (C – S) / N
Where Dn = Depreciation in year n
C = The initial cost
S = The salvage value
N = The useful life (years)
February 2, 2019 11
COTM 4202
12. It tries to model depreciation that actual market
value of a piece of equipment after 1year is less than
the amount predicted by SL method. Thus more annual
depreciation in the early years of a machine’s life and
less in its later years. The depreciation in a given year
can be expressed by the following equation
Dn = (year n digit) * (C – S ) / ∑N
Where Dn = Depreciation in year n
year n digit = The reverse order
C = The initial cost
S = The salvage value
N = The useful life (years)
It tries to model depreciation that actual market
value of a piece of equipment after 1year is less than
the amount predicted by SL method. Thus more annual
depreciation in the early years of a machine’s life and
less in its later years. The depreciation in a given year
can be expressed by the following equation
Dn = (year n digit) * (C – S ) / ∑N
Where Dn = Depreciation in year n
year n digit = The reverse order
C = The initial cost
S = The salvage value
N = The useful life (years)
February 2, 2019 12
COTM 4202
13. The depreciation for a given year is calculated on
the basis of the undepreciated balance (instantaneous
book value), rather than the original cost. Further the
method does not take into account any salvage value of
the asset. The factor can be determined using simple
interest formula and also special tables developed for
the purpose.
Dn = (M/N) * BVn-1 BVn = BVn-1 - Dn
Where Dn = Depreciation in year n
M = constant (Generally 2 for double declining)
N = The useful life (years)
BVn-1 = Opening book value at year n
The depreciation for a given year is calculated on
the basis of the undepreciated balance (instantaneous
book value), rather than the original cost. Further the
method does not take into account any salvage value of
the asset. The factor can be determined using simple
interest formula and also special tables developed for
the purpose.
Dn = (M/N) * BVn-1 BVn = BVn-1 - Dn
Where Dn = Depreciation in year n
M = constant (Generally 2 for double declining)
N = The useful life (years)
BVn-1 = Opening book value at year n
February 2, 2019 13
COTM 4202
14. Compare the depreciation in each year of the
equipment’s useful life for each of the above
depreciation methods for the following wheeled front-
end bucket loader:
• Initial cost:1,480,000 Birr includes delivery and other costs
• Useful life: 7 years
• Salvage value: 180,000 Birr.
Compare the depreciation in each year of the
equipment’s useful life for each of the above
depreciation methods for the following wheeled front-
end bucket loader:
• Initial cost:1,480,000 Birr includes delivery and other costs
• Useful life: 7 years
• Salvage value: 180,000 Birr.
February 2, 2019 COTM 4202 14
15. Investment (or interest) cost represents the annual cost
(converted into an hourly cost) of capital invested in a
machine. If borrowed funds are utilized for purchasing a
piece of equipment, the investment cost is simply the
interest charged on these funds. If it is purchased with
company assets, an interest rate that is equal to the rate of
return on company investment should be charged.
P= C(n+1)/2
P= Average value of the equipment
C= initial cost
n=the useful life (years)
Investment (or interest) cost represents the annual cost
(converted into an hourly cost) of capital invested in a
machine. If borrowed funds are utilized for purchasing a
piece of equipment, the investment cost is simply the
interest charged on these funds. If it is purchased with
company assets, an interest rate that is equal to the rate of
return on company investment should be charged.
P= C(n+1)/2
P= Average value of the equipment
C= initial cost
n=the useful life (years)
February 2, 2019 15
COTM 4202
16. • Investment cost is computed as the product of interest rate
multiplied by the value of the equipment, which is then
converted into cost per hour of operation.
• Assuming no salvage value, the average value of equipment
may be determined from the following equation:
P= C(n+1)/2
• If it has salvage value:
P= [C(n+1) + S(n-1)]/2n
P = Average value of the equipment
C = Initial cost
S = Salvage value
n = The useful life (years)
• Investment cost is computed as the product of interest rate
multiplied by the value of the equipment, which is then
converted into cost per hour of operation.
• Assuming no salvage value, the average value of equipment
may be determined from the following equation:
P= C(n+1)/2
• If it has salvage value:
P= [C(n+1) + S(n-1)]/2n
P = Average value of the equipment
C = Initial cost
S = Salvage value
n = The useful life (years)
February 2, 2019 COTM 4202 16
17. Insurance cost represents the cost incurred due to
fire, theft, accident and liability insurance for the
equipment.
Tax cost represents the cost of property tax and
licenses for the equipment.
Storage cost includes the cost of rent and
maintenance for equipment storage yards, the wages
of guards and employees involved in moving
equipment in and out of storage, and associated direct
overhead.
Insurance cost represents the cost incurred due to
fire, theft, accident and liability insurance for the
equipment.
Tax cost represents the cost of property tax and
licenses for the equipment.
Storage cost includes the cost of rent and
maintenance for equipment storage yards, the wages
of guards and employees involved in moving
equipment in and out of storage, and associated direct
overhead.
February 2, 2019 17
COTM 4202
18. The total equipment ownership cost is calculated
as the sum of depreciation, investment cost, insurance
cost, tax and storage cost.
This should be expressed as an hourly cost and
used for estimating and for charging equipment cost to
projects, it does not include job overhead or profit.
Therefore if the equipment is to be rented to others,
profit should include to obtain an hourly rental rate.
The total equipment ownership cost is calculated
as the sum of depreciation, investment cost, insurance
cost, tax and storage cost.
This should be expressed as an hourly cost and
used for estimating and for charging equipment cost to
projects, it does not include job overhead or profit.
Therefore if the equipment is to be rented to others,
profit should include to obtain an hourly rental rate.
February 2, 2019 18
COTM 4202
19. • Calculate the hourly ownership cost for the second year of operation
of a 465 hp twin-engine scraper. This equipment will be operated 8
h/day and 250 days/year in average conditions. Use the sum-of-
years’-digit method of depreciation as the following information:
• Initial cost: 1,860,000 Birr
• Tire cost: 140,000
• Estimated life: 5 years
• Salvage value: 120,000
• Interest on the investment: 8%
• Insurance: 1.5%
• Taxes: 3%
• Storage: 0.5%
• Fuel price: 72.00Birr/gal
• Operator’s wages: 32 Birr /h
• Calculate the hourly ownership cost for the second year of operation
of a 465 hp twin-engine scraper. This equipment will be operated 8
h/day and 250 days/year in average conditions. Use the sum-of-
years’-digit method of depreciation as the following information:
• Initial cost: 1,860,000 Birr
• Tire cost: 140,000
• Estimated life: 5 years
• Salvage value: 120,000
• Interest on the investment: 8%
• Insurance: 1.5%
• Taxes: 3%
• Storage: 0.5%
• Fuel price: 72.00Birr/gal
• Operator’s wages: 32 Birr /h
February 2, 2019 COTM 4202 19
20. Ownership costs are also called “variable” cost. Because
they depend on several factors such as the number of operating
hours, the types of equipment used, and the location and
working condition of the operation.
Maintenance & Repair cost
Tire cost
Consumable cost
Mobilization & Demobilization cost
Equipment Operator cost
Special Items cost
Ownership costs are also called “variable” cost. Because
they depend on several factors such as the number of operating
hours, the types of equipment used, and the location and
working condition of the operation.
Maintenance & Repair cost
Tire cost
Consumable cost
Mobilization & Demobilization cost
Equipment Operator cost
Special Items cost
February 2, 2019 20
COTM 4202
21. Once a piece of equipment is purchased and
used, it eventually begins to wear out and suffers
mechanical problems. At some point, it reaches the end
of its useful life and must be replaced. The Equipment
replacement decision involves determining when it is no
longer economically feasible to repair.
Equipment Life
Replacement alternatives
Once a piece of equipment is purchased and
used, it eventually begins to wear out and suffers
mechanical problems. At some point, it reaches the end
of its useful life and must be replaced. The Equipment
replacement decision involves determining when it is no
longer economically feasible to repair.
Equipment Life
Replacement alternatives
February 2, 2019 21
COTM 4202
22. Construction equipment life can be defined in three ways.
Physical life:
Age at which the machine worn out and can no longer reliably produce.
Profit life:
The life over which the equipment can earn a profit.
Economic life:
Time period that maximizes the profit over the equipment life.
Construction equipment life can be defined in three ways.
Physical life:
Age at which the machine worn out and can no longer reliably produce.
Profit life:
The life over which the equipment can earn a profit.
Economic life:
Time period that maximizes the profit over the equipment life.
February 2, 2019 22
COTM 4202
24. The owners have to take replacement decision in
correct time to avoid losses. As there are many factors
involved, adopting the most appropriate method is
also important. In determining the optimum
replacement timing some analysis minimum cost,
maximum profit and payback period are to be
considered.
The owners have to take replacement decision in
correct time to avoid losses. As there are many factors
involved, adopting the most appropriate method is
also important. In determining the optimum
replacement timing some analysis minimum cost,
maximum profit and payback period are to be
considered.
February 2, 2019 24
COTM 4202
25. • What is the yearly depreciation for a truck with an
initial cost of 1,500,000 Birr, an assumed life of five
years, and an expected resale value of 480,000 Birr?
Solve using:
• Straight line method
• Declining balance method
• SoYD method.
• What is the yearly depreciation for a truck with an
initial cost of 1,500,000 Birr, an assumed life of five
years, and an expected resale value of 480,000 Birr?
Solve using:
• Straight line method
• Declining balance method
• SoYD method.
February 2, 2019 COTM 4202 25