A firm is considering purchasing two assets. Asset L will have a useful life of 20 years and cost $5 million; it will have installation costs of $1 million but no salvage or residual value. Asset S will have a useful life of eight years and cost $2 million; it will have installation costs of $500,000 and a salvage or residual value of $400,000. Which asset will have a greater annual straight-line depreciation? Question 7 options: a) Asset L has $12,500 more in depreciation per year. b) Asset L has $37,500 more in depreciation per year. c) Asset S has $12,500 more in depreciation per year. d) Asset S has $37,500 more in depreciation per year. Question 8 (5 points) Listen __________ involve a cash flow that never occurs, but we need to add it as a cost or outflow of a new project. Question 8 options: a) Cost recoveries of assets b) Capital expenditures c) Sunk costs d) Opportunity costs