Exercise 14-6 (Algo) Simple Rate of Return Method [LO14-6] The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $55.000. The machine would replace an old piece of equipment that costs $14,000 per year to operate. The new machine would cost $6,000 per yoar to operate. The old machine currently in use is fally deprecdated and could be sold now for a salvage value of $200,000. The new mactine would have a useful life of 10 years with no savage walue Required 1. What is the anrual depreciation experise associated with the new botling machine? 2. What is the annalal incremental net operating inconte provithed by the new bolsing machine? 3. What is the amount of the inithal irvestment associated with this poject that should be used for calculating the slomple rate of returm? 4. What is the simple rate of teturn on the Hew botting abechine? (Round your answer to 1 decimal ploce i.e. 0.123 ahould be considered os 12.34 . Exercise 14-6 (Algo) Simple Rate of Return Method [LO14-6] The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $55.000. The machine would replace an old piece of equipment that costs $14,000 per year to operate. The new machine would cost $6,000 per yoar to operate. The old machine currently in use is fally deprecdated and could be sold now for a salvage value of $200,000. The new mactine would have a useful life of 10 years with no savage walue Required 1. What is the anrual depreciation experise associated with the new botling machine? 2. What is the annalal incremental net operating inconte provithed by the new bolsing machine? 3. What is the amount of the inithal irvestment associated with this poject that should be used for calculating the slomple rate of returm? 4. What is the simple rate of teturn on the Hew botting abechine? (Round your answer to 1 decimal ploce i.e. 0.123 ahould be considered os 12.34