Problem $4$

Intro

$8$ years ago, a new machine cost $$7,000,000$ to purchase and an additional $$450,000$ for the installation. The

machine was to be linearly depreciated to zero over $25$ years.

The company has just sold the machine for $$4,200,000,$ and its marginal tax rate is $25\%.$

Part $1$

What is the annual depreciation?