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Studio Films is considering the purchase of some new film equipment that costs $250,000. It has a 5 year useful life with no salvage value.

Studio Films is considering the purchase of some new film equipment that costs $250,000. It has a 5 year useful life with no salvage value. The new equipment is expected to increase revenues by $115,000 annually. Annual incremental cash operating expenses are expected to be $40,000. The simple rate of return of the equipment is %. (Enter your answer as a whole number)

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