14. (Ignore income taxes in this problem.) Messersmith Corporation is investigating automating a process by purchasing a machine for $688,000 that would have an 8 year useful life and no salvage value. By automating the process, the company would save $160,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $19,000. The annual depreciation on the new machine would be $86,000. What percent is the simple rate of return on the investment closest to?

A. 23.3%

B. 12.5%

C. 11.1%

D. 10.8%