Pink Petunias, a wholesale nursery, is considering purchasinga new machinefor their business for $300,000. Themachine would allow Pink Petunias to increase their pre-tax cash flows by $90,000 each year. The companywill depreciate the machine for 10 years using the straight-line method. Assume that after then 10 years the machine will be worth -0-.Pink Petunias' tax rate is 25%, and the required rate of return is 9%.

The average rate of return Is?