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Civil Engineering · Q217

Engineering Economics

Engineering and GATE · Civil Engineering · question 217

Q217

The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

A.
$ 5,000,000.00
Answer
B.
$ 5,010,000.00
C.
$ 5,025,000.00
D.
$ 5,050,000.00

Answer: Option A

Solution

Answer: Option A
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