HELP

Exercise 12-6 (Algo) Simple Rate of Return Method [LO12-6] The management of dalard MicroBrew is considering the purchase of an automated bottling machine for $67,000. The machine would replace an old plece of equipment that costs $18,000 per year to operate. The new machine would cost $8,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $29.000. The new machine would have o useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense assoclated with the new botting machine? 2. What is the annual incremental net operating income peovided by the new botting machine? 3. What is the amount of the inital imvestment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of retum on the new botling machine? (Hound your answer to 1 decimal place Le. 0.123 should be considered as 12.3% )