Rogers Mining Company purchased a coal mine for $5,000,000 and expects yield of 8,000,000 tons of coal during the next 10 years. Rogers expenses the coal when sold. What is the gross profit for year 1 if 725,000 of the 940,000 tons extracted is sold for $12 per ton? O $10,692,50O O $8,246,875 O $8,112,500 O $8,200,000

Rogers Mining Company purchased a coal mine for $5,000,000 and expects yield of 8,000,000 tons of coal during the next 10 years. Rogers expenses the coal when sold. What is the gross profit for year 1 if 725,000 of the 940,000 tons extracted is sold for $12 per ton? O $10,692,50O O $8,246,875 O $8,112,500 O $8,200,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Your company just acquired a new CNC mill with an initial cost of $25,000, no trade- in value, a life of 10 years, and an annual operating cost of $5,000 for the first 4 years increasing by 5% per year thereafter. Calculate the Present Worth of all costs for this mill with i = 5% per year. O $-67,409 O$-71,523 $-42,409 $-46,523
Amazon in OKC has just invested $250,000 in equipment having a negligible salvage value (SV 0) regardless of when the equipment if replaced. O&M costs equal $50,000 the first year and increase $10.000 per year. Based on a MARR of 10% What is the Capital Recovery (CR) cost for Year 4? A. $86,428 B. $60,317 C. $47,320 D. $39,569
Max. score: 1.00 Ultra-Corporation purchased an equipment costing $300,000. The expected after-tax net income of $9,000 each year. It is predicted that the machine is expected to have a 12-year service life and a residual value $60,000. Company uses straight-lin depreciation. Compute this machine's accounting rate of return. 3% 2.5% 5% 3.75%
Ten investors invested an amount of P 75 million each for coal mining at Sierra Madre Mountain. It is expected that the mine contains 5, 000, 000 tons of coal ores and due to latest technology, it can mine 125, 000 tons of unprocessed ores. The management expects an annual expenses of P 35 million, an annual miscellaneous expenses of P 12 million and milling, drilling and other procedural expenses yearly costs P 815 per ton of unprocessed ores of coal. After such process, 85% of the coal ores produces an income of P 1, 750 per ton. a) Find the annual depletion cost of the mine. b) Ten years after operation, the management annual expenses decreases an amount of P 4 million, annual miscellaneous expenses becomes P13 million and procedural expenses becomes P 920 per ton of unprocessed ores. After procedural process, 75% of unprocessed ores produces an income of P 1, 850 per ton. What would then be its average depletion cost annually for the remaining years of the mine?
provide answer please
just A
A coal mine expected to contain 6.5 million tons of coal was purchased at a cost of $30 million. One million tons of coal for steel making are produced this year. The gross income for this coal is $15,000,000, and operating costs (excluding depletion expenses) are $1,850,000. If you know that coal has a 10% depletion allowance, what will be the depletion allowance? (a) Cost depletion.The cost depletion for the year is $? (b) What is the percentage of depletion
1
15. A company purchases a piece of equipment for $15,000. After nine years, the salvage value is $900. The annual insurance cost is 5% of the purchase price, the electricity cost is $600/yr, and the maintenance and replacement parts cost is $120/yr. The effective annual interest rate is 10%. Neglecting taxes, what is most nearly the present worth of the equipment if it is expected to save the company $4500 per year? (A) $2300 (B) $2800 (C) $3200 (D) $3500
A company invested P100,000 to purchase a new equipment that wil We used to increase the profit but it is expected to be realized after two years from the year of purchase. The said profit was P50,000 per year for four years. Three years later, the company purchased an add-on to the machine worth P75,000. Due to that add on, the profit increased to P85,000 and lasted for five more years. If the company decided to sell that equipment for P8,000 and MARR is 15% per year
3
A factory manager is considering the purchase of one of the following two production equipment. Cash flow estimates for equipment A are in year-zoro dollars while those of equipment B are in actual dollars Equipment A (year-zero S) Equipment B (actual $) $1,200 Initial investment $9,500 Net annual revenue $3.000 $4,000 $0 Market value at end of useful life Useful ife, years 11 11 The manager uses a market interest rate of 12% per year. If inflation rate is expected to average 5.66% per year over the next several years, determine the PW of each equipment. 1. The PW of Equipment A is OA. S14,161 OB. $14,578 OC. $12,500 OD. $0,313 2. The PW of Equipment B is O A. $20,347 OB. S15,200 OC. $20,903 OD. $12,651