Ministry of Higher Education and Scientific Research

University of Technology
Dept. of Production Engineering and Metallurgy

Class: 4 th . Stage Time: Hrs.

Subject: Mining Management Examiner: Lec. Dalia A. Ahmed
Branch: Mining And Extractive Metallurgy Date: / 4 /2024
Quiz 6 (2023-2024)

Q/ A construction company bought a 180000 metric ton earth sifter at a cost of

$65000. The company expects to keep the equipment a maximum of 7 years. The
operating cost will be constant at $ 40000 . the salvage value is estimated to be $30000
for year 1 and 2 and $ 20000 for year 3 through 7. At i = 10 % per year, determine
the economic service life of the sifter and the associated annual worth.

Year 1 2 3 4 5 6 7
A/P 1.1 0.57619 0.40211 0.31547 0.26380 0.22961 0.20541
A/F 1.0 0.47619 0.30211 0.21547 0.16380 0.12961 0.10541