Jason Corporation has invested in a machine that cost $80,000, that has a useful life of eight 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 five years. Given these data, the simple rate of return on the machine is closest to:

a)

6.8%

b)

7.5%

c)

9%

d)

12%

Please show work. Thanks!