10 Equipment costing $900,000 was purchasedfor use in a sand and gravel pit. The pit willoperate for 5 years, then it will be shut downand the equipment sold for $70,000.The project schedule calls for 40,000 m3 ofsand & gravel as follows:Year12345What is the unit-of-production (UOP)depreciation schedule?Year 1Year 2Year 3Required Sand andGravel (m3)4,0008,00016,0008,0004,000Year 4[Choose ][Choose ][Choose ][Choose ]()()

First cost of the equipment FC= $900,000 Salvage value of the equipment F after 40,000 m3 of sand…

Answered: 2 3 4 5 What is the unit-of-production…

2 3 4 5 What is the unit-of-production (UOP) depreciation schedule? Year 1 Year 2 Year 3 8,000 16.000 8,000 4,000 Year 4 [Choose] O [Choose ] [Choose ] [Choose ] O ✪

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Equipment costing $900,000 was purchased
for use in a sand and gravel pit. The pit will
operate for 5 years, then it will be shut down
and the equipment sold for $70,000.
The project schedule calls for 40,000 m3 of
sand & gravel as follows:
Year
1
2
3
4
5
What is the unit-of-production (UOP)
depreciation schedule?
Year 1
Year 2
Year 3
Required Sand and
Gravel (m3)
4,000
8,000
16,000
8,000
4,000
Year 4
[Choose ]
[Choose ]
[Choose ]
[Choose ]
()
()

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