A company is considering purchasing a machine (asset) that costs $280,000 and is estimated to have a $20,000 residual value at the end of its ten-year useful life. If the machine is purchased, annual revenues from its operation are expected to be $145,000 and annual cash operating expenses (not including depreciation expense) are expected to be $82,000. a) Calculate annual straight-line depreciation expense for this asset (round to nearest $1). b) If the machine is purchased, calculate the average rate of return expected on this machine (rounded to 0.0%).

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