ORCL Corp. is considering purchasing an asset that costs $500,000, has a useful life of ten years, and is depreciated using straight-line depreciation. The new asset will have a salvage value of $40,000 at the end of its useful life. The new asset will replace an old asset that is fully depreciated and has no salvage value. If the accounting rate of return of his investment is 12.7%, then the expected annual operating income from this new asset for each of the next ten years is: $100,000 $63,500 $53,975 $46,380 $12.700