Blaine Corporation is considering replacing a technologically obsolete machine with a new state of the art numerically controlled machine The new machine would cost $270,000 and would have a twelve year useful life Unfortunately, the new machine would have no salvage value The new machine would cost $44,000 per year to operate and maintain, but would save $85,000 per year in labor and other costs The old machine can be sold now for scrap for $27,000 The simple rate of return on the new machine is closest to (Ignore income taxes in this problem ) 7 61 15 23 31 48 6 85 Blaine Corporation is considering replacing a technologically obsolete machine with a new state of the art numerically controlled machine The new machine would cost $270,000 and would have a twelve year a useful life Unfortunately, the new machine would have no salvage value The new machine would cost $44,000 per year to operate and maintain, but would save $85,000 per year in labor and other costs The old machine can be sold now for scrap for $27,000 The simple rate of return on the new machine is closest to (Ignore income taxes in this problem) O 761 O 15 23 O 31 48 O 6 85

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Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $270,000 and would have

Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $270,000 and would have a twelve-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $44,000 per year to operate and maintain, but would save $85,000 per year in labor and other costs. The old machine can be sold now for scrap for $27,000. The simple rate of return on the new machine is closest to: (Ignore income taxes in this problem.)

7.61%

15.23%

31.48%

6.85%

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Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $270,000 and would have a twelve-year a useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $44,000 per year to operate and maintain, but would save $85,000 per year in labor and other costs. The old machine can be sold now for scrap for $27,000. The simple rate of return on the new machine is closest to: (Ignore income taxes in this problem) O 761% O 15.23% O 31.48% O 6.85%