GATE 2022 PI – Question 34

Operations Research and Operations Management · Engineering Economy and Costing · 1 mark · Numerical answer

A ₹65000 machine has salvage value ₹5000. Straight-line annual depreciation is ₹10000. Find useful life in years (integer).

Show answer and explanation

Correct answer: 6 to 6

Explanation

Straight-line depreciation = (initial cost−salvage)/life. Therefore life = (65000−5000)/10000 = **6 years**.

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