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Save & Exit

Lazar Corporation is evaluating a proposal to invest in a machine costing $$89,000.$ The machine has an estimated useful life of ten years, and an estimated salvage value of $$14,000.$ The machine will increase the company$/$s net income by approximately $$9,600$ per year. All revenue and expenses other than depreciation will be recelved and paid in cash.

What is the expected rate of return on average investment of the machine?

Note: Round your answer to one decimal point

Multiple Choice

$10\mathrm{.}0\%$

$17\mathrm{.}0\%$

$18\mathrm{.}6\%.$

$48\mathrm{.}0\%$