Fast Food, Inc., has purchased a new donut maker. It cost $16,000 and has an estimated life of 10 years. The following annual donut sales and expenses are projected (Ignore income taxes.): Sales Expenses: $22,000 Flour, etc., required in making donuts $%10,000 Salaries Depreciation 6,000 1,600 17,600 Net operating income $ 4,400 Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return for the new machine is closest to: Multiple Choice () 20% Prev 9 of 25 Next >