Faculty of Engineering

Sohar University

CIVIL4810

Project management
2014-2015

Problem Sheet 6
6.1.
On a small construction project, an excavator is
purchased at an interest rate of 3.2%. The present value of
excavator is 13,500 Euros and its scrap value at the end of 9
years is 3,000Euros.
What will be
i.
ii.
iii.

The annual depreciation cost

The total depreciation cost at the end of 5 years
The book value at the end of 6 year

Also plot and compare the depreciation curve for all

depreciation methods

6.2.
A Construction equipment is purchased for $45,000 at an
interest rate of 3%, and it estimated to have a life of 10 years
and a scrap value to $5000 at the end of that time.
What will be
i.
ii.
iii.

The annual depreciation cost

The total depreciation cost at the end of 6 years
The book value at the end of 6 year

Also plot and compare the depreciation curve for all

depreciation methods