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Watertown Paper Corporation is considering adding another machine for the manufac- ture of corrugated cardboard. The machine would cost $900,000. It would have an esti- mated life of 6 years and no salvage value. The company estimates that annual revenue would increase by $400,000 and that annual expenses excluding depreciation would increase by $190,000. It uses the straight-line method to compute depreciation expense. Management has a required rate of return of 9%. Compute the annual rate of return