Early in January 2019, Hewitt Inc. acquired a new machine and incurred $12,000 of interest, installation, and overhead costs that should have been capitalized but were expensed. The company earned net operating income of $113,000 on average total assets of $850,000 for 2019. Assume that the total cost of the new machine will be depreciated over 10 years using the straight-line method. Required: a. Calculate the ROI for Hewitt for 2019. b. Calculate the ROI for Hewitt for 2019, assuming that the $12,000 had been capitalized and depreciated over 10 years using the straight-line method. (Hint: There is an effect on net operating income and average assets.) c. Given your answers to parts a and b, why would the company want to account for this expenditure as an expense? d. Assuming that the $12,000 is capitalized what will be the effect on ROI for 2020 and subsequent years, compared to expensing the interest, installation, and overhead costs in 2019? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Calculate the ROI for Hewitt for 2019. (Round your answer to 1 decimal place.) ROI Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Calculate the ROI for Hewitt for 2019, assuming that the $12,000 had been capitalized and depreciated over 10 years using the straight-line method. (Hint: There is an effect on net operating income and average assets.) (Round your answer to 1 decimal place. (e.g., 32.1)) ROI % Complete this question by entering your answers in the tabs below. Required A Required B Required Required Given your answers to parts a and b, why would the company want to account for this expenditure as an expense? (Select all that apply.) Expensing an item immediately increases company's net profit. Less time, effort and cost is spent for accounting purposes. Expensing an item immediately reduces the company's tax expense in the future. Expensing an item immediately reduces the company's tax expense. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Assuming that the $12,000 is capitalized, what will be the effect on ROI for 2020 and subsequent years, compared to expensing the interest, installation, and overhead costs in 2019? Oin 2020 and subsequent years, ROI will not be affected. In 2020 and subsequent years, ROI will be higher. Oin 2020 and subsequent years, ROI will be lower.