Sweet Acacia Company is considering a capital investment of $$167,000$ for a new machine. The new machine is expected to have a useful life of $5$ years with no salvage value. It is estimated that annual revenues would increase by $$62,200$ during the life of the machine. It is estimated that annual expenses during the life of the machine would increase by $$23,623,$ which does not include annual depreciation. Sweet Acacia uses the straight$-$line method of depreciation. Sweet Acacia's minimum acceptable rate of return on projects is $9\%.$

Calculate the annual rate of return on the proposed capital expenditure. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$

Annual rate of return

Should Sweet Acacia Company buy the machine?N n