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12 Exercises Ballard MicroBrew is considering the purchase of an automated botting machine...

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Question

Accounting

12 Exercises
Ballard MicroBrew is considering the purchase of an automated botting machine for $47000. The machine wroukd of equipment that costs $13.000 per year to operate. The new machine would cost $6.000 pert year to operate. Than of 10 years with no salvage value.
Required:
4. What is the annual depreciation expense associated with the new bottling machiner
2. What is the annual incremental net operating income provided by the new botting mact inf
3. What is the initial investment used for calcutating the machine's simpte ate of thint:
4. What is the simple rate of return on the new botting machine?
Note: Round your answer to 1 decimal piace i.e.0.123 shouid be considered an 12.304
\table[[1. Depreciation expense],[2 Incremental net operating income],[3 Initial investment],[4. Simple rate of return]]
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