ACtE09 · Chapter 9Basic Electrical & Electronics🏛️ Past Licensure QuestionID: 8bb9435d
In engineering economics and asset valuation, salvage value is defined as the:
In engineering economics and asset valuation, salvage value is defined as the:
Multiple Choice Options
- A
Value of dismantled scrap materials of a property at the end of its utility period
- B✓ Correct Option
Estimated resale value of an engineering property/asset at the end of its useful economic life without being dismantled
- C
Value of the property recorded in the account book in that particular year
- D
Present value of a property considering it to be replaced at current market rates
Detailed Technical Solution & Explanation
Salvage Value is the estimated net market value of a built-up asset/property at the end of its useful economic life without being dismantled. In contrast, Scrap Value is the value of raw dismantled materials (bricks, steel, copper).
Option Analysis:
•
Option A (Dismantled materials): Defines Scrap value.
•
Option B (Resale value at end of useful life without dismantling): Correct; formal definition of Salvage value.
•
Option C (Account book value): Defines Book value.
•
Option D (Replacement value): Defines Replacement cost.
Reference: Mock Test 02NEC Licensure Syllabus