Question 1 Purves Corporation has just acquired a new machine with the following characteristics (ignore income taxes) Cost of the equipment Annual cash savings Life of the machine $50,000 $15,000 10 years The company uses straight-line depreciation and a $5,000 salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment and the salvage at the end of the project The simple cate of retum would be closest to 30.0% O 17.5% O 18.75% O 21.0% 19F Sunny