2. Calculate (show how) the annual depreciation expense, accumulated depreciation, and after tax salvage value associated with an asset given the following information:

Initial value of asset (including shipping and installation): $12 million

The company uses straight line depreciation to depreciate the asset to a book value of $2 million by the end of the life of the project which is ten years.

Expected salvage value (market price) of the asset upon termination of project: $3.2 million.

Marginal tax rate: 30%