GOVERNMENT ENGINEERING COLLEGE, BHARUCH

CIVIL ENGINEERING DEPARTMENT

SEMESTER: BE VII TERM: ODD 2020-21

SUBJECT: PROFESSIONAL PRACTICE AND VALUATION (2170610)

TUTORIAL: 4 TOPIC: VALUATION

Q.1 A small pump house is to be purchased in a private building at a cost of 33000. Assuming life
of pump house 12 years. Worked out the annual sinking fund to be deposited at 5% of
compound interest.
Q.2 A house is purchased Rs.12000. Salvage value after 6 years is Rs.3000. Determine amount of
deprecation for each year by all three methods.
Q.3 The cost of construction of a small house is Rs.500000 and life of structure is 75 years.
Determine depreciation after 30th years by all three methods at 8% compound interest.
Assume scrap value suitability.
Q.4 The gross rent of the building is Rs.1500 per month. The total outgoings are 20% of gross
rent. Rate of interest on investment is 8%. Work out value of the building.
Q.5 A building generates monthly income of Rs.5000.The total outgoings are 40%. Rate of interest
is 8% on capital and 4% on sinking fund. Find capitalized value of a property. Take life of
building suitably.
Q.6 A building constructed on a land of cost of Rs.85000 and the construction cost is 275000. The
estimated life of the structure is 85 years. Investor desires 7.5% return on land and 10.5% on
the building construction cost. The annual repairs may be taken as half % age of the building
cost. Outgoings are 28% of gross income. Calculate the amount of rent to be charged by
considering interest on sinking fund at 4%. Take scrap value of building as Rs.35000.
Q.7 A property fetches a net annual income of Rs.900 deducting all outgoings. Workout the
capitalized value of the property if the rate of interest is 6% per annum.
Q.8 A three storied building is standing on a plot of 800 sq.m. The building is of RCC framed
structure. The future is of 70 years. The building fetches a gross rent of Rs.1500 per month.
Work out the capitalized value of the property on the basis of 6% net yield. For sinking fund
3% compound interest may be assumed. Cost of land may be taken as Rs.40 per sq.m. Others
data may be assumed suitably.
Q.9 A house is purchased Rs.100000. Salvage value after 12 years is Rs.10000. Determine amount
of deprecation and book value for each year by all three methods up to three years only.
Q.10 A building costing Rs. 700000 has been constructed on a freehold land measuring 100 sq.m.
Recently in a big city. Prevailing rate of land in a neighborhood is Rs. 150 per sq.m.
Determine the net rent of the property, if the expenditure on an outgoing including sinking
fund is Rs. 24000 per annum. Work out also the gross rent of the property per month.