If a company spends $28.8 million to install refurbished footwear-making equipment with capacity to produce 2 million pairs of athletic footwear at its Asia Pacific production facility, then its annual depreciation costs at that facility will rise by 10% or $2,880,000 5% or $1,440,000. 8% or $2,304,000. 4% or $1,152,000 2.5% or $720,000