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.

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The Answer of 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.

Rayburn Corporation Purchased a New Machine for $120,000