CIVL 2812—Project Appraisal (Semester 2, 2019)
CIVL 2812—Project Appraisal (Semester 2, 2021)
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Tutorial 5 Questions
Objectives A
• Be able to apply methods learned so far to compare projects with different useful lives (not equal to
study period).
Objectives B
• Understand the concept of depreciation.
• Be able to calculate depreciation amount using various methods for a given project.
• Understand the implications of depreciation on cash-flow.
ESSENTIAL QUESTIONS
CIVL 2812—Project Appraisal (Semester 2, 2021)
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ESSENTIAL QUESTIONS
Problem 7.1
How are depreciation deductions different from other production or service expenses such as labor, material,
and electricity? (7.2)
Problem 7.2
What conditions must a property satisfy to be considered depreciable? (7.2)
Problem 7.3
Explain the difference between real and personal property. (7.2)
Problem 7.4
Explain how the cost basis of depreciable property is determined. (7.2)
CIVL 2812—Project Appraisal (Semester 2, 2021)
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EXTENSION QUESTIONS
CIVL 2812—Project Appraisal (Semester 2, 2021)
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EXTENSION QUESTIONS