Civil war-Day 17-Oct 13-PWD-Valuation&Depreciation

A building costs Rs. 40000. Considering scrap value as 10% of the cost and life as 60 years, the depreciated value of building after 20 years is

• 33800
• 28000
• 12000
• 31800

Answer explanation

Depreciated value = Cost − [(Cost − Scrap)/Life × Years]

= 40000 − [(40000 − 4000)/60 × 20] = Rs. 28,000

A property fetches net annual income of Rs 900 deducting all outgoings. Workout the capitalized value of the property if rate of interest is 5%

• Rs. 18000
• Rs. 20000
• Rs. 15000
• Rs. 10000

Answer explanation

Capitalized value = Net income / (Rate/100) = 900 / 0.05 = Rs. 18000.

Using straight line method annual depreciation D is equal to

• (Life in year–Scrap value)/Original cost
• (Scrap value–Life in year)/Original cost
• (Original cost–Life in year)/Scrap value
• (Original cost–Scrap value)/Life in year

Answer explanation

In straight-line depreciation: D = (Original cost – Scrap value) / Life in years.

When an owner borrows money using their property as security, they grant an interest to the lender in the form of a____

• Mortgage
• Easement
• Assessed value
• Annuity

Answer explanation

When a property is pledged for a loan, the owner grants an interest in it to the lender — this is called a mortgage.

The total length of a steel bar with hooks on both sides, with effective length L, is

• L+9d
• L+12d
• L+18d
• L+24d

Answer explanation

• Each standard hook adds an extra length of 9d (where d = diameter of the bar).

• If hooks are provided at both ends, the total extra length = 2 × 9d = 18d.

For a one hooked bar of diameter 8 mm, and length of straight portion is L, then Total length provided will be

• L + 144
• L + 72
• L + 32
• None of these

Answer explanation

For a single hook, extra length = 9d = 9×8 = 72 mm. Therefore, total = L + 72 mm.

Major Outgoings In valuation includes

• Loss of rent
• Repairs
• Sinking fund
• All of these

Answer explanation

Major outgoings include all recurring expenses like repairs, sinking fund, and loss of rent.

Interest per annum is 4% then year's purchase is

• 0.75
• 2.5
• 25
• 100

Answer explanation

Year’s purchase (Y.P.) = 1 / (Rate of interest) = 1 / 0.04 = 25.

Which among the following is false

• Mortgager – Person who takes loan
• Mortgagee – Person who advances the loan
• Lessor – Person who takes lease
• Both a and b

Answer explanation

Lessor is the owner who grants a lease, not the one who takes it. The lessee takes the lease, so ‘Lessor – Person who takes lease’ is false.

The multiplying factor which when multiplied by the net income gives capitalized value of the property of the present time

• Year's purchase
• Sinking fund
• Capital cost
• Rate of interest

Answer explanation

Year’s Purchase (Y.P.) is the factor which converts net income into the capitalized value: Capitalized Value = Net Income × Y.P.