Suppose Canyon Buff Corp (CBC) has purchased a new piece of equipment worth $10,000,000. The equipment is expected to have a useful life of 5 years and a salvage value of $70,000. Assuming that CBC uses straight line depreciation to determine depreciation expense for the equipment, what is the equipments depreciation expense in year 1?

	A.	$930,000
	B.	$70,000
	C.	$1,986,000
	D.	$2,000,000

If a project is at the accounting break-even point when the cost of capital is 0%, the cost of capital for the economic break-even point will be most likely be ______ 0%.

	A.	Lower than
	B.	Higher than
	C.	The same as