16. Almaraz Corp. had total sales of $20,000,000, net operating income of $800,000, and average operating assets of 2,000,000. The company's minimum required rate of return is 16%. The margin is closest to: A) 0.06 B) 0.07 C) 0.04 D) 1.30 17. The management of Clarissa Company is considering investing in new equipment. Old equipment, with a current salvage value of $30,000, would be replaced by a new machine. The new machine would be purchased for $500,000 and would have a 5 year useful life and no salvage value. The company would save $160,000 per year in cash operating costs. The simple rate of return on the investment is closest to: A) 13.7% B) 12.7% C) 10.7% D) 8.7%