2.15 A company is considering the purchase of a computer system for $18,000. The operating costs will

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2.15 A company is considering the purchase of a computer system for $18,000. The operating costs will be $10,000 per year and the useful life is expected to be 5 years with a salvage value of $5000 at that time. The present annual sales volume should increase by $16,000 as a result of acquiring the new computer system. The company’s tax rate is 50%. Determine the rate of return on this investment for the following scenarios:

a. Before taxes

b. No depreciation

c. SLD

d. SYD depreciation

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