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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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