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4. Prairie Gravel expects to produce 60,000 tonnes of gravel annually for five years. The deposit cost $150K to acquire; the annual gross revenues are

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4. Prairie Gravel expects to produce 60,000 tonnes of gravel annually for five years. The deposit cost $150K to acquire; the annual gross revenues are expected to be $9 per tonne, and the net revenues are expected to be $4 per tonne. a) Compute the annual depletion on a cost basis (10 pts) b) Compute the annual depletion on a percentage basis (10 pts)

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