Fast Food, Inc. has purchased a new donut maker. It cost $16,000 and has an estimated life of 10 years with no salvage value. The following annual donut sales and expenses are projected: Sales $22.000 Expenses: Flour, etc., required in making donuts $10,000 Salaries 6,000 Depreciation 1.600 17.600 Net income $4.400 The simple rate of return for the new machine is closest to: 27.5% 37.5% 80.0% 20.0% Next Page Page 7 of 25