What is the annual cash flow using the gross book value

Reference no: EM131025308

Rayburn Corporation purchased a new machine for $250,000. The machine has an estimated useful life of 10-years with no salvage value and a return on investment (ROI) of 10%. ROI is computed using annual cash flows and straight-line depreciation.

1. What is the annual cash flow using the gross book value method? (Ignore Tax)

$22,500.
$25,000.
$50,000.
$47,500.

Reference no: EM131025308

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