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The Jackson Company has invested in a machine that cost $63,000, that has a useful life of fourteen years, and that has no salvage value

The Jackson Company has invested in a machine that cost $63,000, that has a useful life of fourteen years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of six years. Given these data, the simple rate of return on the machine is closest to: (Ignore income taxes.) (Round your answer to 1 decimal place.)

9.5%

7.0%

5.9%

23.8%

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