Outlaws is a general goods retail chain in the High Plains region.Outlaws is forecasting its financial statements for Year 3.Selected financial information for Years 1 and 2 is provided in the table.In Year 3 Outlaws is planning to invest $300 million in CAPEX.The average depreciation rate is 6%.What is the forecasted depreciation expense in Year 3?
Selected Financial Information
Outlaws Inc.($ millions)

Question

Quizplus · Accepted Answer

Depreciation 11ea7fdb_fc46_9204_a768_85af4d31805e_TB2902_11 = Dep. rate × ( 11ea7fdb_fc46_9205_a768_15615ca90188_TB2902_11 + CAPEX)
Depreciation 11ea7fdb_fc46_9206_a768_6f95cb49768c_TB2902_11 = 0.06 × ($9,637 + $300)
Depreciation 11ea7fdb_fc46_9207_a768_5b69222d8625_TB2902_11 = $596

Outlaws Is a General Goods Retail Chain in the High