Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 7, Problem 17P
To determine

Calculate the depreciation.

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A piece of machinery at a maunfacturing plant has a cost basis of $44,000, and a salvage value of $13,000 after producing 32,000 units. Using units-of-production depreciation, what is the allowed depreciation charge per unit. Express your answer in $ to the nearest $0.01.
A concrete and rock crusher for demolition work has been purchased for $50,000, and it has an estimated SV of $12,000 at the end of its five year life Engineers have estimated that the following units of production (in m³ of crushed material) will be contracted over the next five years. Using the units of production depreciation method, what is the depreciation allowance in year three, and what is the BV at the end of year two? The depreciation allowance in year three is $ The BV at the end of year two is $. (Round to the nearest dollar) (Round to the nearest dollar) EOY m³ 1 14,000 2 26,000 3 35,000 4 17,000 5 8,000
The corrosive waste in industrial sewage limits the useful life of the piping in a waste processing plant to 12 years. The piping system was originally worth $148,000, and it will cost the company $31,000 to remove it at the end of its 12-year useful life. Find a depreciation equation in terms of x years of use.   ( Hand written solution please

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Engineering Economy

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