It will have installation costs of 2 million and a salvage


A firm is considering purchasing two assets. asset A will have a usseful life of 8 years and a cost of $10 million. it will have installation costs of $400,000 and a salvage of residual of $650,000. Asset B will have a useful life of 12 years and a cost $14 million. It will have installation costs of $2 million and a salvage of residual value of $4.0 million. Annual straight-line depreciation would ____ for asset A and _____ for asset B

a) 1.00 million, 1.22 million

b) 1.17 million, 0.83 million

c) 1.22 million, 1.00 million

d) 0.83 million, 1.17 million

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Finance Basics: It will have installation costs of 2 million and a salvage
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