The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 25%. Currently, sales are $850,000 per year and cost of sales are 60% of sales. The equipment is expected to last for 6 years with no residual value. The cash flow expected at the beginning of the year is $435000. What is the amount of depreciation deduction the company could expense annually assuming the straight-line depreciation method is used?

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Depreciation Expense per year under straight l... View the full answer