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Waller Weaponry, Inc. is planning to purchase equipment for $2,500,000 that will be depreciated straight line to a $13,500 salvage value over 15 years. The

Waller Weaponry, Inc. is planning to purchase equipment for $2,500,000 that will be depreciated straight line to a $13,500 salvage value over 15 years. The delivery and installation for this equipment is $25,000 and maintenance to get the equipment calibrated for its first use is $5,000. Sales tax on the equipment purchase is 6.5%. Net working capital required for the use of this equipment is $270,000. What is the total initial outlay at time zero and what will be the yearly straight-line depreciation expense? (round to the nearest whole dollar)

A. $2,964,450; $178,730

B. $2,964,125; $196,708

C. $2,964,125; $178,708

D. $2,962,500; $196,600

E. $2,962,500; $178,600

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