The only difference between firm X and firm Y is that firm X has old, fully depreciated equipment. Firm Y just purchased all new equipment which will be depreciated over 10 years. Assuming all else equal:

A. Firm Y will have a higher net income.

B. Firm Y will have a lower profit margin.

C. Firm X will have a lower profit margin.

D. Firm X will have a lower return on equity.

E. Firm Y will have a higher return on assets.