Jark Corporation has invested in a machine that cost $63,000, that has a useful life of nine years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of six years. Given these data, the simple rate of return on the machine is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

Multiple Choice

• 3.1%

• 2.0%

• 27.8%

• 5.6%