XYZ purchased an equipment worth of$150,000 including insurance cost $30,000 and duty cost$20,000 on May 15, 2018. They have decided to capitalize the$35,000 installation charge instead of $20,000 duty cost.Scrap value of the equipment was 5% of the actual price. Economic life of the equipment was 5 years.

Calculate the depreciation expense for the year 2018 and 2019under the following method:

a) Straight line method

b) Sum of the years method

If the net cash flowof the equipment in 2018 and 2019 was 50,000 and 40,000respectively, what is ROI under the bothmethods.