6. costs each year do not reflect cash flow because the actual purchase and installation (outflow of dollars) of the asset have already taken place. Sunk Working Capital Opportunity Depreciation 7. 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 $600,000 but no salvage or residual value. Asset B will have a useful life of 8 years and cost $2.3 million; it will have installation costs of $220,000 and a salvage or residual value of $100,000 Which asset will have a greater annual straight-line depreciation? Asset A has $30,000 more in depreciation per year. Asset B has $72,458 more in depreciation per year. Asset A has $80,833 more in depreciation per year. Asset B has $108,622 more in depreciation per year