{"id":8472,"date":"2024-04-15T03:01:09","date_gmt":"2024-04-15T03:01:09","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=8472"},"modified":"2024-04-15T03:01:09","modified_gmt":"2024-04-15T03:01:09","slug":"a-tractor-shovel-has-a-purchase-price-of-rs-4-7-lacs-and-could-save-the-organization-an-amount-of-rupees-one-lac-per-year-on-operating-costs-the-salvage-value-after-the-amortization-period-is-10-of","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-tractor-shovel-has-a-purchase-price-of-rs-4-7-lacs-and-could-save-the-organization-an-amount-of-rupees-one-lac-per-year-on-operating-costs-the-salvage-value-after-the-amortization-period-is-10-of\/","title":{"rendered":"A tractor shovel has a purchase price of Rs. 4.7 lacs and could save the organization an amount of rupees one lac per year on operating costs. The salvage value after the amortization period is 10% of the purchase price. The capital recovery period will be A. 3.7 years B. 4.23 years C. 5 years D. 7.87 years"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;3.7 years&#8221; option2=&#8221;4.23 years&#8221; option3=&#8221;5 years&#8221; option4=&#8221;7.87 years&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. 3.7 years.<\/p>\n<p>The capital recovery period is the number of years it takes to recover the initial investment in a project. In this case, the initial investment is Rs. 4.7 lacs and the annual savings are Rs. 1 lac. Therefore, the capital recovery period is 4.7 lacs \/ 1 lac = 4.7 years.<\/p>\n<p>Option B is incorrect because it is the annual savings divided by the annual depreciation. The annual depreciation is not the same as the annual savings.<\/p>\n<p>Option C is incorrect because it is the purchase price divided by the annual savings. The purchase price is not the same as the annual savings.<\/p>\n<p>Option D is incorrect because it is the purchase price divided by the annual depreciation plus the salvage value. The annual depreciation is not the same as the annual savings, and the salvage value is not relevant to the capital recovery period.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;3.7 years&#8221; option2=&#8221;4.23 years&#8221; option3=&#8221;5 years&#8221; option4=&#8221;7.87 years&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[655],"tags":[],"class_list":["post-8472","post","type-post","status-publish","format-standard","hentry","category-construction-planning-and-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A tractor shovel has a purchase price of Rs. 4.7 lacs and could save the organization an amount of rupees one lac per year on operating costs. The salvage value after the amortization period is 10% of the purchase price. The capital recovery period will be A. 3.7 years B. 4.23 years C. 5 years D. 7.87 years<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/a-tractor-shovel-has-a-purchase-price-of-rs-4-7-lacs-and-could-save-the-organization-an-amount-of-rupees-one-lac-per-year-on-operating-costs-the-salvage-value-after-the-amortization-period-is-10-of\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A tractor shovel has a purchase price of Rs. 4.7 lacs and could save the organization an amount of rupees one lac per year on operating costs. The salvage value after the amortization period is 10% of the purchase price. The capital recovery period will be A. 3.7 years B. 4.23 years C. 5 years D. 7.87 years\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;3.7 years&#8221; option2=&#8221;4.23 years&#8221; option3=&#8221;5 years&#8221; option4=&#8221;7.87 years&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/a-tractor-shovel-has-a-purchase-price-of-rs-4-7-lacs-and-could-save-the-organization-an-amount-of-rupees-one-lac-per-year-on-operating-costs-the-salvage-value-after-the-amortization-period-is-10-of\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T03:01:09+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A tractor shovel has a purchase price of Rs. 4.7 lacs and could save the organization an amount of rupees one lac per year on operating costs. The salvage value after the amortization period is 10% of the purchase price. The capital recovery period will be A. 3.7 years B. 4.23 years C. 5 years D. 7.87 years","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/a-tractor-shovel-has-a-purchase-price-of-rs-4-7-lacs-and-could-save-the-organization-an-amount-of-rupees-one-lac-per-year-on-operating-costs-the-salvage-value-after-the-amortization-period-is-10-of\/","og_locale":"en_US","og_type":"article","og_title":"A tractor shovel has a purchase price of Rs. 4.7 lacs and could save the organization an amount of rupees one lac per year on operating costs. The salvage value after the amortization period is 10% of the purchase price. The capital recovery period will be A. 3.7 years B. 4.23 years C. 5 years D. 7.87 years","og_description":"[amp_mcq option1=&#8221;3.7 years&#8221; option2=&#8221;4.23 years&#8221; option3=&#8221;5 years&#8221; option4=&#8221;7.87 years&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/a-tractor-shovel-has-a-purchase-price-of-rs-4-7-lacs-and-could-save-the-organization-an-amount-of-rupees-one-lac-per-year-on-operating-costs-the-salvage-value-after-the-amortization-period-is-10-of\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T03:01:09+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-tractor-shovel-has-a-purchase-price-of-rs-4-7-lacs-and-could-save-the-organization-an-amount-of-rupees-one-lac-per-year-on-operating-costs-the-salvage-value-after-the-amortization-period-is-10-of\/","url":"https:\/\/exam.pscnotes.com\/mcq\/a-tractor-shovel-has-a-purchase-price-of-rs-4-7-lacs-and-could-save-the-organization-an-amount-of-rupees-one-lac-per-year-on-operating-costs-the-salvage-value-after-the-amortization-period-is-10-of\/","name":"A tractor shovel has a purchase price of Rs. 4.7 lacs and could save the organization an amount of rupees one lac per year on operating costs. 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