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Madrigal Corporation purchased a new machine for $121,000. The machine has an estimated useful life of 20-years with no salvage value and a return on

Madrigal Corporation purchased a new machine for $121,000. The machine has an estimated useful life of 20-years with no salvage value and a return on investment (ROI) of 14%. ROI is computed using annual cash flows and straight-line depreciation. What is the annual cash flow using the gross book value method?

$16,940.

$6,050.

$12,100.

$22,990.

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