An MRI machine is purchased by a hospital at a price of 27 lakhs with an expected life of 12 years. What will be the value of annual depreciation?

2.25 lakhs

The correct answer is Option (3) → 2.25 lakhs

Cost of the MRI machine: 27 lakhs

Expected life of the MRI machine: 12 years

Annual Depreciation = Cost of the asset / Expected life of the asset

Annual Depreciation = 27 lakhs / 12 years

Annual Depreciation = 2.25 lakhs