Western carolina coal co expects to produce 125000 tons of, Financial Management

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Western carolina coal co expects to produce 125000 tons of

Western Carolina Coal Co. expects to produce 125,000 tons of coal annually for 15 years. The deposit cost $2M to acquire; the annual gross revenues are expected to be $9.50 per ton, and the net revenues are expected to be $4.25 per ton.

a. Compute the annual depletion on a coast basis.

b. compute the annual depletion on a percentage basis.

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Financial Management: Western carolina coal co expects to produce 125000 tons of

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Financial Management: Western carolina coal co expects to produce 125000 tons of

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