An oil company is buying a semi-submersible oil rig for $25 million. Additionally, it will cost $2.5 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 annual depreciation expenses in this case?
A) $5.5 million
B) $5.0 million
C) $4.0 million
D) $5.3 million
Correct Answer:
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