Jark Corporation has invested in a machine that cost $75,000, that has a useful life of fifteen 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.)

Garrison 16e Rechecks 2017-11-11

Multiple Choice

• 23.3%

• 6.4%

• 7.5%

• 10.0%