24) The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $18,000, would be replaced by a new machine. The new machine would be purchased for $372,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $129,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.):

Multiple Choice

• 34.7%

• 18.9%

• 18.0%

• 16.7%