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UPSC Civil Service Exam Questions - Engineering

Q1:

The depreciation charges for a machine are thirty paise per working hour. The machine has a scrap value of Rs 2, 000 and a working hour average life of 24000 hours. What is the purchase price of the machine ?

A Rs. 1, 800

B Rs. 7, 200

C Rs. 9, 200

D Rs. 14, 275

ANS:C - Rs. 9, 200

Working hour = 24000 * 0.3 = 7200,
Scrap value = 2000,
Purchase price = 7200 + 2000 = 9200.