John is a starting a machine shop business and is considering the following two options. The annual interest rate is 4%. Option 1: Acquire a 3-axis CNC milling machine and hire one operator -CNC machine: $100,000 (7-year lifetime) -Operator's salary: $60,000/year - Maintenance: $6000/year -Salvage value: $10,000 after 7 years Option 2: Acquire two manual milling machines and hire two operators - Manual machine: $20,000/each (10-year lifetime) -Each operator's salary: $40,000/year - Maintenance: S1000/year for two machines -No salvage value 7. (BONUS -10 pts) If Option 1 is chosen and John's business carns $100,000 per year, what's the Rate of Return for his business investment? Find the closet number from 4%, 6%, 8%, and 10%