Zinc, Inc. is considering the acquisition of a new processing line. The processo
ID: 2633981 • Letter: Z
Question
Zinc, Inc. is considering the acquisition of a new processing line. The processor can be purchased for $3,750,000; it will have a 10-year useful life. It will cost $165,000 to ship and $85,250 to install the processor. A recently completed feasibility study that was performed at a cost of $65,000 indicated that the processor would produce a positive NPV. The processor will be depreciated using the straight-line method to zero expected salvage value. Studies have shown that employee-training expenses will be $125,000. What will be the annual depreciation expense of the processing line for capital budgeting purposes? Show your work....
$412,525
$390,000
$375,000
$419,025
$412,525
$390,000
$375,000
$419,025
Explanation / Answer
$390,000
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