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Annual depreciation expense was 650000 the companys cost of

Skywards Inc., an airline caterer, is purchasing refrigerated trucks at a total cost of $3.25 million. After-tax net income from this investment is expected to be $750,000 for the next five years. Annual depreciation expense was $650,000. The company's cost of capital is 15 percent.

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Finance Basics: Annual depreciation expense was 650000 the companys cost of

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