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Acquisition cost of equipment Useful life Salvage value at end of useful life Annual income generated by asset (before deducting depreciation) $500,000 5 years 0

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Acquisition cost of equipment Useful life Salvage value at end of useful life Annual income generated by asset (before deducting depreciation) $500,000 5 years 0 $150,000 The following is the accelerated depreciation schedule of the equipment. Year 1 2 3 4 5 Total Depreciation $200,000 120,000 72,000 54,000 54,000 $500,000 Required: Using the information provided above, complete the table given below. If there is a loss, leave the ROI column blank. (Round your "ROI" percentage answers to 1 decimal place (i.e., 1234 should be entered as 12.3).) Year Income Before Annual Depreciation Depreciation Income Net of Depreciation Average Net Book Value ROI Based on Net Book Value Average Gross Book Value ROI Based on Gross Book Value 1 $ % 2 % 150,000 150,000 150,000 150,000 % % % % % 3 4 % % 5 150,000 %

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