Which asset have greater annual straight-line depreciation

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Reference no: EM131975218

Question: 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: EM131975218

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