Rayburn Corporation Purchased a New Machine for $120,000

question 50

Multiple Choice

Rayburn Corporation purchased a new machine for $120,000.The machine has an estimated useful life of 10-years with no salvage value and a return on investment (ROI) of 15%.ROI is computed using annual cash flows and straight-line depreciation.What is the annual cash flow using the gross book value method?

• A)$12,200.
• B)$18,000.
• C)$28,200.
• D)$30,000.