Answer complete please,,, answer in text form without image The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $55,000. The machinewould replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $7,000 per year tooperate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $26,000. The new machinewould have a useful life of 10 years with no salvage value.Required:1. What is the annual depreciation expense associated with the new bottling machine?2. What is the annual incremental net operating income provided by the new bottling machine?3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return?4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should beconsidered as 12.3%.)1. Depreciation expense2. Incremental net operating income3. Initial investment4. Simple rate of return%

For calculation of depreciation expenses, we need to use straight line method.Depreciation expenses…

Answered: The management of Ballard MicroBrew is…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 4P

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