What is the equivalent annual savings from the

purchase if Gluon uses straight-line depreciation? Assume the new machine will have no salvage

value. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball

for $60,000 and sell its old low-pressure glueball, which is fully depreciated, for $10,000. The new

equipment has a 10-year useful life and will save $14,000 a year in expenses. The opportunity cost

of capital is 11%, and the firm's tax rate is 21%.