Khamsah Mining Company has purchased a tract of mineral land for $900.000. It is estimated that this tract will yield 120,000 tons of ore with sufficient mineral content to make mining and processing profitable. It is further estimated that 6,000 tons of ore will be mined the first and last year and 12,000 tons every year in between. (Assume 11 years of ruining operations.) The land will have a salvage value of $30,000