MC Qu. 44 The Jackson Company has invested in a machine that cost ...

The Jackson Company has invested in a machine that cost $90,000, 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 five years. Given these data, the simple rate of return on the machine is closest to: (Ignore income taxes in this problem.) (Round your answer to 1 decimal place.)

5.3%

31.1%

6.4%

8.9%