Course: Value Design, Book: Engineering Economy 15th edition.

A concrete and rock crusher for demolition work has been purchased for $650,000, and it has an estimated market value of $250,000 at the end of its fifteen-year life. Engineers have estimated that the following units of production (in cm3 of crushed material) will be contracted over the next fifteen years. Using the units of production depreciation method,find the following:

	EOY	cm3		a. Depreciation allowance in year nine.
	1	175,000		b. BV at the end of year thirteen.
	2	300,000
	3	237,500
	4	112,500
	5	162,500
	6	181,250
	7	206,250
	8	243,750
	9	254,375
	10	190,000
	11	195,000
	12	197,000
	13	197,500
	14	208,315
	15	312,500