According to the depreciation rates used by the company and described in the Production Cost Report, if a company adds 70 new workstations at a cost of $75,000 each and also spends $10 million for an addition to its assembly plant to accommodate the new workstations, then its annual depreciation costs will rise by:
a. 4% of $15,250,000 or $610,000.
b. $1,550,000.
c. $193,750.
d. $800,000.
e. $775,000
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