18) Determine the depreciation cost ($/equipment work hour). The equipment initial cost is $67,500 and an anticipated salvage value of the equipment is $2,000 and the useful life of the equipment is 6,000 working hours. Depreciation cost per year = (original cost - salvage value)/useful life a) 10.92 b) 11.34 c) 12.56 d) 13.05 Solution Depreciation cost per year = (original cost - salvage value)/useful life original cost = $67,500 salvage value= $2,000 useful life = 6,000 working hours depreciation cost ($/equipment work hour) = (67500-2000)/6000 = $10.92 hance option a) is correct .