$12$ Exercises

Ballard MicroBrew is considering the purchase of an automated botting machine for $$47000.$ The machine wroukd of equipment that costs $$13\mathrm{.}000$ per year to operate. The new machine would cost $$6\mathrm{.}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$.0\mathrm{.}123$ shouid be considered an $12\mathrm{.}304$

$\backslash$table$[[1.$ Depreciation expense$],[2$ Incremental net operating income$],[3$ Initial investment$],[4.$ Simple rate of return$]]$