mining co prepare the cost and installation of machinery

The cost to purchase and install a new machine is $15,000. The installation of machine can reduce annual labor cost by $4,200. The life of the machine is 15 years. The salvage value of the machine after fifteen years will be zero. The required rate of return of Smart Manufacturing Company is 25%. Should Smart Manufacturing Company purchase the ...

Apr 18, 2016· The total cost of installation including time, material, infrastructure, and opportunity costs must be evaluated. Suitability: Equipment selection must be suitable to the application and building. For example, variable refrigerant flow or chilled beams are technologies that either do …

On July 23 of the current year, Dakota Mining Co. pays $4,715,000 for land estimated to contain 5,125,000 tons of recoverable ore. It installs machinery costing $410,000 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25 seven days before mining operations begin.

Mining Cost Service continues to be a useful reference on a wide range of topics for early stage mine planning through to 'fill the gaps' on more detailed studies. Mining Cost Service provides an independent source for information on equipment, quantities and cost for a significant number of mining methods and range of production rates.

Mar 16, 2015· It installs machinery costing $1,260,000 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin. The company removes and sells 464,250 tons of ore during its first five months of operations ending on December 31.

The installation cost for equipment was based on linear interpolation from Table 5-11, and adjusted for inflation for the intervening four years. We expect inflation in the four years to be similar to the period 1990-1994 and we will use the GNP Deflator index.

The installation factor, or total installed cost (TIC) factor, includes subcontracted costs, associated direct labor costs and materials needed for installation of equipment. Lang method A method that is slightly more detailed and therefore needs some more project information, is the so-called Lang method.

The costs for each of these operations can be developed by estimating the equipment production rates and machine rates. EXAMPLE: A relatively complex surfacing operation requires developing a 20,000 cubic meter solid rock source (26,400 cubic meters in the road prism) to surface 26.4 km of road including shooting and crushing rock, loading ...

3.1 Introduction. The unit cost of logging or road construction is essentially derived by dividing cost by production. In its simplest case, if you rented a tractor with operator for $60 per hour - including all fuel and other costs - and you excavated 100 cubic meters per hour, your unit cost for excavation would be $0.60 per cubic meter.

The cost basis of the machine = Purchase price + Overhaul cost + Installation cost + Special acquisition fees = $34,523 + $9,634 + $5,369 + $4,429 = $53,955 A machine with a cost of $54,600 has an estimated residual value of $4,593 and an estimated life of 5 years or 18,216 hours.

NPV.Mathews Mining Company is looking at a project that has the following forecasted sales: first-year sales are 6,200 units, and sales will grow at 15% over the next four years (a five-year project). The price of the product will start at $123.00 per unit and will increase each year at 55%. The production costs are expected to be 65% of the current year's sales price.

Jul 26, 2020· Method #2 - CPU Mining. CPU mining utilizes processors to mine cryptocurrencies. It used to be a viable option back in the day, but currently, fewer and fewer people choose this method how to mine cryptocurrency daily. There are a couple of reasons why that is. First of all, CPU mining is EXTREMELY slow.

2.6. Mining cost indices 35 2.7. Capital intensity 36 2.8. Cost estimation in mining 38 2.9. Capital cost estimation in open pit mines 39 2.10. Concluding remarks 40 3. METHODOLOGY 42 3.1. Chapter overview 42 3.2. Brief description of the parametric cost estimation methodology 42 3.3. Data utilised 44 3.4. Cost estimation formulae 44 3.5.

Watauga Company purchased equipment on July 1, 2017 for $70,000. Sales tax on the purchase was $700. Other costs incurred were freight charges of $800, insurance during shipping of $ 150, repairs of $1,300 for damage during installation, and installation costs of $1, 050. What is the cost of the equipment? (LO 1) (a)$70,000 (b)$71,500 (c ...

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Equipment life-cycle cost analysis (LCCA) is typically used as one component of the equipment fleet management process and allows the fleet manager to make repair,equipment replacement, and retention decisions on the basis of a given piece of equipment's economic life.

Mining machinery installed at the mine was purchased secondhand at a cost of $60,000. This machinery cost the former owner $150,000 and was 50% depreciated when purchased. Khamsah Mining estimates that about half of this machinery will still be useful when the present mineral resources have been exhausted, but that dismantling and removal costs ...

2.1 Cost Categorization. In this paper, costs in open pit mines are categorized into four groups: (1) capital costs, (2) operating costs, (3) general and administrative (G&A) costs, and (4) fixed ...

The company installs machinery in the mine costing $213,500, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2015, and mines and sells 166,200 tons of …

The cash equivalent price of the machine was $23,000. Due to an employee strike, Mendez could not install the machine immediately, and thus incurred $300 of storage costs. Costs of installation (excluding the storage costs) amounted to $800. The amount to be capitalized as the cost of the machine is a. $23,000. b. $23,800. c. $24,100. d. $26,000.

Apr 01, 2018· On April 2, 2015, Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company installs machinery in the mine costing $213,500, with an estimated seven-year life and no salvage value. The machinery will be …

A rule of thumb for estimating a machine's insurance cost is $10 for every $1,000 of the machine's average value (in other words 1%), but if you know the actual insurance cost for your machine then use that figure instead. Estimated insurance cost/year = av. value ÷ 100 . Depreciation . Depreciation is the decrease in a machine's value over time.

On April 2, 2013, Montana Mining Co. pays $4,618,480 for an ore deposit containing 1,428,000 tons. The company installs machinery in the mine costing $209,400, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore during the remaining eight months of 2013. Explanation:

Maybe you want to expand an existing operation or revive an old one. Perhaps you hope to interest investors in a mining project, sell equipment and machinery, or sell services such as safety training, environmental cleanup, pitch a research project, or even catering services to the mining industry.

The costs of mine closure and reclamation of the site now constitute a significant portion of mining cost. Hence, ore bodies that can be mined in a way that produces virtually no waste and that leaves a small surface "footprint" may have distinct economic and environmental advantages over ore bodies that produce large amounts of waste and ...

Shaft mining is a form of underground mining where shafts are pushed vertically from top to bottom to excavate the ores and minerals. It is also called shaft sinking. It is best suited for concentrated minerals such as iron, coal, etc. which can be found at the depth of the earth's surface. It …

I estimated that the delivery, pick-up, and insurance would cost $300 each time I rented. I would also have to buy the fuel for which I used my earlier estimate of $3.25 per hour. My total estimated hourly costs for renting an excavator thus came to ($1000 + $300) / …

cost. Cost is the sace made in resources to acquire another resource. Cost is measured in monetary units which in the United States is the dollar. For example, a machine is purchased by paying $4,000 in cash and trading in an old machine having a sales value of $1,000. The cost of the new machine is $5,000 because resources

In the mining valuation model Excel templates or mining financial model XLS, included are the projections of the expected metal content of ore mined, relevant income, and cost drivers, and come up with financial projections for a mining operation. The data is then used to determine the value, profitability, and feasibility of the mining project ...

Formula is: (Cost – Residual Value) / Estimated Life = Annual Depreciation Example #1: Company F purchased a machine that cost $50,000 and will last 5 years. A salvage value was not assigned to the asset. Determine the annual depreciation expense using the straight-line method and prepare the journal entry to record the expense.