In property valuation, what does salvage value mean?
Correct answer: A. The value recovered from an asset at the end of its useful life
- A. The value recovered from an asset at the end of its useful life
- B. The original purchase price of an asset before construction
- C. The annual rent received from an occupied property
- D. The cost of repairing an asset after ordinary maintenance
Explanation
Salvage value is the estimated amount recoverable when an asset is retired, sold or dismantled. It is commonly considered when calculating depreciation, unlike original cost or rental income.
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Construction management covers planning, scheduling, resource control, contracts, procurement, site organisation, safety, quality assurance and project documentation. Estimation includes quantity take-off, rate analysis, bill preparation, valuation and cost control, with attention to the difference between direct and indirect costs and between an estimate, a tender and a final account.
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