Rayburn Corporation Purchased a New Machine for $120,000

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.