(Depre.) For the initial investment in a mechanical workshop, the following expenses were made:

Machinery $220k. Tools $60k. Personal safety equipment (boots, gloves, helmets) $30k. Courses in use of machines $5k. First aid courses $5k. Local remodeling $52k. Motorcycle $25k. Office furniture $10k. Computer and printer $18k. It all adds up to $425k.

The estimated semi-annual cash flow is as follows:

Expenditures 1st semester $400k. Graduation 1st year $620k. Graduation 3rd semester $550k. Graduation 2nd year $750k.

Income 1st semester $840k. Income 1st year $1,170k. Income 3rd semester $1,140k. Income 2nd year $1,540k

What should be the applicable depreciation for the evaluation of the project after taxes.

Options:

$20k semester in years 1-3, $17k semester in years 4-5, and $14.5k semester in years 6 and up.

$3.3k monthly 36 months, $2.8k monthly 24 months, and $2.4k monthly 60 months.

$35.2k monthly

$40k semester in years 1-3, $34k semester in years 4-5, and $29k semester in years 6 and up.

$40k annually