Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $450,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $20,000 per year to operate and maintain but would save $100,000 per year in labour and other costs. The old machine can be sold now for scrap for $50,000. The simple rate of return on the new machine is closest to: 20.00%. 8.75%. 7.78%. 22.22%