The management of Ballard MicroBrew is considering the purchase of an automated botting machine for $43,000. The machine would replace an old piece of equlpment that costs $11,000 per year to operate. The new machine would cost $5,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a salvage value of $18,000, The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine? 2. What is the annual incremental net operating income provided by the new botting machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return?