(Ignore income taxes in this problem.) Friden Company has just purchased a new piece of equipment with the following characteristics: Purchase cost of equipment $27,000 Annual cost savings that will be provided by the equipment $6,000 Life of the equipment 10 years The simple rate of return would be approximately: 1) 22.2%. 2) 12.2%. 3) 11.1%. 4) 10%. show work please