Please solve and explain:

(lgnore income taxes in this problem.) The management of Stanforth Corporation is investigating automating a process. Old equipment, with a current salvage value of $32,250, would be replaced by a new machine. The new machine would be purchased for $505,000 and would have a 5 year useful life and no salvage value. By automating the process, the company would save $204.400 per year in cash operating costs. The simple rate of return on the investment is closest to (Assume the company uses straight-line depreclation.) 21.9% 211% o 41 9% o 209% 0