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A firm's capital budgeting project requires equipment that costs $40,000 and will be depreciated on a straight-line basis (equal annual amounts) over 4 years to

A firm's capital budgeting project requires equipment that costs $40,000 and will be depreciated on a straight-line basis (equal annual amounts) over 4 years to a $4,000 book value. What is the depreciation each year over the machine's 4 year life?

9,000

9,250

10,000

10,250

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