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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
$12,000
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.
$835,333
B.
$833,333
C.
$1,333,333
D.
$1,335,333
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