Home › Previous year questions › GATE 2021 PI › Question 51GATE 2021 PI – Question 51 Operations Research and Operations Management · Engineering Economy and Costing · 2 marks · Numerical answer
A machine initially costs ₹1000000 and has salvage ₹50000 after ten years. Using straight-line depreciation, find book value at end of year 7 in rupees (integer).
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Show answer and explanation Correct answer: 335000 to 335000
Explanation Annual depreciation = (1000000−50000)/10 = ₹95000. After seven years, book value = 1000000−7×95000 = **₹335000**.
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