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A company is considering purchasing a machine that costs $288000 and is estimated to have no salvage value at the end of its 8 -year

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A company is considering purchasing a machine that costs $288000 and is estimated to have no salvage value at the end of its 8 -year usefullife. If the machine is purchased, annual revenues are expected to be $90000 and annual operating expenses exclusive of depreciation expense are expected to be $38000. The straight-line method of depreciation would be used. If the machine is purchased, the annual rate of return expected on this machine is 18.06%11.11%5.56%36.12%

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