GATE 2024 PI – Question 63

Operations Research and Operations Management · Engineering Economy and Costing · 2 marks · Numerical answer

Machines A,B are bought together. A: price ₹20000, life ten years, salvage ₹5000. B: price ₹15000, life twenty years, salvage ₹5000. With straight-line depreciation, find value(A) − value(B) after five years (integer ₹).

Practise this question in The GATE Grind →

Show answer and explanation

Correct answer: 0 to 0

Explanation

A depreciates (20000−5000)/10 = ₹1500/year, leaving ₹12500 after five years. B depreciates (15000−5000)/20 = ₹500/year, also leaving ₹12500. Difference = **₹0**.

More Engineering Economy and Costing questions

GATE 2023 PI Q65 – Products P and Q sell in a 10:1 ratio. Fixed cost is ₹140000. Selling prices are ₹10/unit…
GATE 2022 PI Q34 – A ₹65000 machine has salvage value ₹5000. Straight-line annual depreciation is ₹10000.…
GATE 2022 PI Q64 – A plant produces 24 electric cars/day. Setup cost is ₹19476 million, variable cost ₹0.6…
GATE 2021 PI Q51 – A machine initially costs ₹1000000 and has salvage ₹50000 after ten years. Using…
GATE 2026 PI Q32 – A customer invests ₹2,00,000 now for payouts of ₹1,00,000 yearly for three consecutive…
GATE 2026 PI Q57 – A product has fixed cost ₹3,00,000 and variable cost ₹150/unit. Selling 5000 units…

All Engineering Economy and Costing questions →