Mineral Economics, Mine Planning, Systems Engineering · Mineral Economics · 2 marks · Numerical answer
A shovel costs P=₹20 crore, has salvage S=₹2 crore and life n=10 years. Declining-balance rate is $r=1-(S/P)^{1/n}$. Find its second-year depreciated cost in crore, to two decimals.
The retained-value factor is a=(2/20)^(1/10)=0.794328. End-of-second-year book value is20a²=12.6191 crore, or12.62. If “depreciated cost in the second year” instead means that year’s depreciation expense, it is20a(1−a)=3.2674 crore, or3.27. The official key accepts both disjoint ranges; they remain separate rather than a broad interval between the interpretations.
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