A Firm Is Considering Purchasing an Asset That Will Have

question 90

Multiple Choice

A firm is considering purchasing an asset that will have a useful life of 15 years and cost $7.5 million; it will have installation costs of $300,000 and a salvage or residual value of $1,800,000.What is the annual straight-line depreciation for this asset?

• A)$400,000 per year
• B)$422,000 per year
• C)$498,750 per year
• D)$530,450 per year

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