Equipment management consist of proper planning, selection, procurement, installation, operation & maintenance which play an important role in the successful completion of the construction project. 


Write short note for following topics a) Owning Cost b) Operating Cost

A machine was purchased of $.45,000 on 1stJanuary 1986. The installation cost was $.7,000. It was replaced by a new machine on 31stDecember 2005. If scrape value is $.15,000.

(i) Determine rate of depreciation and depreciation fund on 15thJune 1995. (use straight-lining method)

(ii) After 12 years of running some assemblies replace at a rate of $.15,000. Then what will be the new rate of depreciation on 31stDecember 2005.


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