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8 years ago, a new machine cost $7 million to purchase and an additional $460,000 for the installation. The machine was to be linearly depreciated

8 years ago, a new machine cost $7 million to purchase and an additional $460,000 for the installation. The machine was to be linearly depreciated to zero over 20 years.

The company has just sold the machine for $4.2 million, and its marginal tax rate is 25%.

Part 1

What is the annual depreciation?

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