Cameron Industrial

Machine: 4milion

Delivery: 12,000

Life: 6years

Additional: 3million

Straight-line Depreciation, yearly expenses?

Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $4 million to buy the machine and $12,000 to have it delivered and installed. Building a clean room in the plant for the machine will cost an additional \$3million The machine is expected to have a working life of six years. If straight-line depreciation is used, what are the yearly depreciation expenses in this case