Which asset will have a greater annual straight-line


A firm is considering purchasing two assets. Asset A will have a useful life of 10 years and cost $3 million; it will have installation costs of $400,000 but no salvage or residual value. Asset B will have a useful life of 4 years and cost $1.3 million; it will have installation costs of $180,000 and also have no residual value. Which asset will have a greater annual straight-line depreciation?

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Finance Basics: Which asset will have a greater annual straight-line
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