Correct option is B
The scrap value of an asset is generally considered the residual value it can fetch at the end of its useful life when it is sold or disposed of. For most assets, this is often a positive value, reflecting the remaining utility or recyclable value of the materials.
However, for a Reinforced Cement Concrete (R.C.C.) structure, the situation is unique due to the nature of the materials and the demolition process involved. R.C.C. structures are made of concrete reinforced with steel bars (rebar).
At the end of their lifecycle, demolishing these structures is labor-intensive and costly because:
1. The process requires heavy machinery to break the concrete.
2. Separating the embedded steel from concrete for recycling is a complex process.
3. The mixed materials (concrete rubble and steel) have to be transported away from the demolition site, which incurs additional costs.
4. There could be costs associated with disposing of the materials, especially if the concrete rubble is not repurposed or recycled.
Given these factors, the "scrap value" of an R.C.C. structure is considered to be negative. This is because the cost of demolition, material separation, and disposal often exceeds the value of the recycled materials obtained from the structure.
