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Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $5 million to buy the machine and
Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $5 million to buy the machine and $22,000 to have it delivered and installed. Building a clean room in the plant for the machine will cost an additional $3 million. 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?
A. | $337,000 | |
B. | $637,000 | |
C. | $937,000 | |
D. | $837,000 |
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