What are the yearly depreciation expenses in this case

Assignment Help Financial Management

Reference no: EM13883419

An oil company is buying a semi-submersible oil rig for $20 million. Additionally, it will cost $1.5 million to move the oil rig to the oil-field and to prepare it for operations. If it is depreciated over five years using straight-line depreciation, what are the yearly depreciation expenses in this case?

A) $3.8 million

B) $4.0 million

C) $4.3 million

D) $5.0 million

Reference no: EM13883419

Questions Cloud

How much more is the expected value of return for plan : Under good conditions (25% probability), Financing Plan A will produce $30,000 higher return than Plan B. Under normal conditions (65% probability), Plan A will produce $10,000 higher return than Plan B, and under tight money conditions (10% probabil..

How does business risk management differ from individual : How does Business Risk Management differ from Individual Risk Management?

Gas obeys the law of corresponding states : A certain gas has a molecular weight of 30.0 a critical temperature of 310K. and a critical pressure of 4.5MPa. Calculate the density in kg/m3 of this gas at 465 K and 9.0MPa

Short-term financing-what is the firms interest payment : Goniff Steel has $24,000 in assets, consisting of $1,000,000 of temporary current assets, $2,000,000 of permanent current assets, and $1,200,000 of fixed assets. Short-term interest rates are 8% and long-term interest rates are 12%. If long-term fina..

What are the yearly depreciation expenses in this case : An oil company is buying a semi-submersible oil rig for $20 million. Additionally, it will cost $1.5 million to move the oil rig to the oil-field and to prepare it for operations. If it is depreciated over five years using straight-line depreciation,..

Application - child-centered curriculum : Application: Child-Centered Curriculum: Program Perspective. The ability to create and maintain effective early childhood education programs that support and engage every child requires knowledge of individual children;knowledge of quality environ..

Treasury security note with a two-year maturity : The expected yield on a one-year T-bill at the beginning of year 1 is 7.20%. The expected yield on a one-year T-bill at the beginning of year 2 is 7.80%. Using the pure expectations theory of the term structure of interest rates, what is the expected..

Compound interest on the unpaid balance : You have just borrowed $100,000, and you agree to pay it back over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest on the unpaid balance. What will be the size of these payments?

What would be the present value if it were an annuity due : What is the present value of an ordinary annuity of $1,000 per year for 7 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due?

User Account

All Pages