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A concrete plant is considering a new piece of equipment with an initial cost of $65,000 and a salvage value of $20,000 at the end of its 10-year useful life. The annual maintenance cost of this piece of equipment is projected to be $12,000. The equipment will produce an annual labor savings of $20,000. What is the approximate projected rate of return on the equipment?

a) 11.8%

b) 7.4%

c) 6.8%

d) 10.6%