Question: A robotics firm decides to install the latest computer server at a cost of $ 2 million which is going to increase its computational capacity.

A robotics firm decides to install the latest computer server at a cost of $2 million which is going to increase its computational capacity. The installation cost is $200,000. The firm decides to use the server for the next eight years and then sell it at a price of $200,000. Using a straight line method, what will be the annual depreciation amount?

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