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A firm is considering purchasing an asset that will have a useful life of 15 years and cost $5 million; it will have installation costs

A firm is considering purchasing an asset that will have a useful life of 15 years and cost $5 million; it will have installation costs of $500,000 and a salvage or residual value of $500,000. What is the annual straight-line depreciation for this asset?

$333,333 per year

$600,000 per year

$700,000 per year

$500,000 per year

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