Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 21

A coal mine purchased for $5 million has enough coal to operate for 10 years. The annual cost is expected to be $200,000 per year. The coal is expected to sell for $150 per ton, with annual production expected to be 10,000 tons. Coal has a depletion percentage rate of 10%. The depletion charge for year 6 according to the percentage depletion method would be closest to:
A) $75,000
B) $100,000
C) $125,000
D) $150,000