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
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10

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 ]
()
()
Transcribed Image Text: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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