4 pts Mega Corporation wants to purchase a new machine for its factory which could reduce costs in its plant in France. The following data was provided by management: Purchase price of new machine $280,000 Annual cost savings due to new machine $49,000 Useful life of the equipment 8 years Salvage value at the end of the life Net present value of Mega's cash flows $88,000 Discount rate 10% What is the simple rate of return of the new machine (rounded to the nearest tenth)? 13.9% 31.4% 17.5% None of the answers are correct Next - Previous