>> Business Economics
For a 5-year capital budgeting project, two large pieces of equipment must be purchased. The first piece will be purchased at Time 0. It will cost $120,000 and be depreciated straight-line for four years. The second piece of equipment isn't required right away, so it won't be purchased until Time 2. This piece will cost $450,000 and will be depreciated straight-line for three years. Assume that depreciation starts the year following purchase for both pieces of equipment. Find the total depreciation expense for each year of the project.