13) please answer correctly

Novak Company is considering a capital investment of $150,000 for a new machine. The new machine is expected to have a useful life of 5 years with no salvage value. It is estimated that annual revenues would increase by $62,500 during the life of the machine. It is estimated that annual expenses during the life of the machine would increase by $28,525, which does not include annual depreciation Novak uses the straight-line method of depreciation. Novak's minimum acceptable rate of return on projects is 9%. Calculate the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 15.25%.) Annual rate of return % Should Novak Company buy the machine? Yes liter No Attempts: 0 of 1 used Submit