The equipment used in construction activity is purchased now for Rs.15000, and is used continuously on the job. The annual OMR costs assignable as lump sum at the respective year beginning are Rs.5000. The equipment will be used for 5 years after which its salvage value is estimated to then beRs.1000. The equivalent annual cost as reckoned at the end of each year when MACR is 10% for which SFF for 5 years is 0.1638 is:-
A.
Rs.7800
B.
Rs.8000
C.
Rs.8793
D.
Rs.8957
Correct Answer : C

Question

The equipment used in construction activity is purchased now for Rs.15000, and is used continuously on the job. The annual OMR costs assignable as lump sum at the respective year beginning are Rs.5000. The equipment will be used for 5 years after which its salvage value is estimated to then beRs.1000. The equivalent annual cost as reckoned at the end of each year when MACR is 10% for which SFF for 5 years is 0.1638 is:-

A.
Rs.7800
B.
Rs.8000
C.
Rs.8793
D.
Rs.8957

Correct Answer : C

A to Z Exams · Accepted Answer

Rs.8793

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