Silva company

Silva Company uses straight-line depreciation and is considering a capital expenditure of which the following relevant cash flow data have been estimated: Estimated useful life: Initial investment: Savings year 1: Savings year 2: Savings year 3: Residual value after 3 yrs 3 years $500,000 $180,000 $190,000 $180,000 $40,000 The total depreciation expense over the life of the asset is $460,000. $20,000. $540,000. $190.000