If a company spends $40 million to install new 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

A)10% or $4,000,000.

B)8% or $3,200,000.

C)4% or $1,600,000.

D)2.5% or $1,000,000.

E) 5% or $3,000,000.