Which asset have a greater annual straight-line depreciation

Reference no: EM13281917

A firm is considering purchasing two assets. Asset A will have a useful life of 12 years and cost $4 million; it will have installation costs of $300,000 and a salvage or residual value of $400,000. Asset B will have a useful life of 8 years and cost $3.5 million; it will have installation costs of $200,000 and a salvage or residual value of $800,000. Which asset will have a greater annual straight-line depreciation?

Reference no: EM13281917

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