Problem:
As can be confirmed from information on the Help Screen for a company's Plant Operations Report (see the Plant Investment section), if a company adds new plant capacity at a cost of $40 million, then its annual depreciation costs will rise by:
A. 20% or $8,000,000
B. 4% or $1,600,000.
C. 15% or $6,000,000.
D. 10% or $4,000,000.
C. 5% or $2,000,000.
Please show your all work.