Construction Planning and Management
The original cost of an equipment is Rs.10,000. Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be

Rs. 7,600
Rs. 6,400
Rs. 8,800
Rs. 5,000

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Construction Planning and Management
During the construction period, price variation clause in contracts caters to

Variation in cost in materials element, labour element and petrol-oil-lubricant element
Rate of inflation
Variation in total cost of the project on an ad hoc basis
Increase in rates of only important materials

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