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

Answer rating: 100% (QA)

To calculate the annual straightline depreciation for each asset you need to subtract the salvage v... View the full answer