A Firm Is Considering Purchasing Two Assets

question 13

Multiple Choice

A firm is considering purchasing two assets.Asset A will have a useful life of 12 years and cost $4 million; it will have installation costs of $600,000 but no salvage or residual value.Asset B will have a useful life of 8 years and cost $2.3 million; it will have installation costs of $220,000 and a salvage or residual value of $100,000.Which asset will have a greater annual straight-line depreciation?

• A)Asset A has $30,000 more in depreciation per year.
• B)Asset A has $80,833 more in depreciation per year.
• C)Asset B has $72,458 more in depreciation per year.
• D)Asset B has $108,622 more in depreciation per year.

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Definitions:

Sedentary

A lifestyle characterized by a significant amount of sitting or lying down with minimal physical activity, often linked to adverse health outcomes.

Social Support

The perception or reality of being cared for and having assistance available from other people, which can significantly impact health and well-being.

Dynamic Fitness

A state of physical health and well-being that encompasses the ability to perform daily activities with optimal energy, strength, and endurance through various types of physical activities and exercises.

Intervention Efficacy

The effectiveness of a specific intervention or treatment in achieving its intended outcomes or goals.