Simple Rate of Return Method [LO8-6] The management of Wallingford Micro Brew is considering the purchase of an automated bottling machine for $80,000. The machine would replace an old piece of equipment that costs $33,000 per year to operate. The new machine would cost $10,000 per year to operate. The old machine currently in use could be sold now for a scrap value of $5,000. The new machine would have a useful life of 10 years with no salvage value. Compute the simple rate of return on the new automated bottling machine. (Round the payback period to 1 decimal place.)