C Corporation is investigating automating a process by purchasing a machine for $809,100 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $141,500 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,900. The annual depreciation on the new machine would be $89,900. The simple rate of return on the investment is closest to (Ignore income taxes.):

Multiple Choice

• 6.56%

• 5.29%

• 16.89%

• 11.29%