Snow Canyon Solutions is considering replacing a technologically obsolete machine with a

new state$-$of$-$the$-$art machine. The new machine would cost $$270,000$ and would have a

twelve$-$year useful life. Unfortunately, the new machine would have no salvage value. The

new machine would cost $$44,000$ per year to operate and maintain, but would save $$85,000$

per year in labor and other costs. The old machine can be sold now for scrap for $$27,000.$

The simple rate of return on the new machine is closest to $($Ignore income taxes.$)$:

$15\mathrm{.}23\%$

$6\mathrm{.}85\%$

$31\mathrm{.}48\%$

$7\mathrm{.}61\%$