Exercise 12-6 (Algo) Simple Rate of Return Method [LO12-6] The manachement of Ballatd MictoBirew is considering the purchase of an automated botting machine for $55,000. The machine would replace an old piece of equipment that costs $14.000 per year to cperate. The new machine would cost $6.000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage vitue of $21000 The new mach would have a usetul life of 10 years with no salvage value. Required: 1. What is the annual depreclation expense associated with the new bocting machine? 2. What is the annual incremental net operating income provided by the new botting mochine? 4. What is the sinple rate of return on the new bottling machine? (Round your onswer to 1 decimni place lie. 0.123 should he conslibered as 12.3%