A company is considering purchasing a machine that costs $264000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $120000 and annual operating expenses exclusive of depreciation expense are expected to be $38000. The straight-line method of depreciation would be used. If the machine is purchased, the expected annual rate of return on this machine is O 31.1% O 18.6%. O 37.1% O 62.1%