Oscar Is the Manager of the Component Division for a Small

Multiple Choice

Oscar is the manager of the component division for a small manufacturing company, and his department is evaluated using various metrics each year including Return on Investment (ROI) . Oscar is debating whether he should purchase a new machine for his department. Oscar is determined to have an ROI of at least 7%. He is considering the purchase of Machine A with a return on sales of 0.3877, sales of $2,349, and a 10-year useful life or Machine B with a return on sales of 0.3994, sales of $2,560, and a 9-year useful life. Each machine would be depreciated using straight-line machine. What is the yearly Depreciation Expense for Machine B? (Do not round intermediate calculations.)

A) $1,339.99
B) $1,460.35
C) $1,488.88
D) $1,622.96