The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $71,000. The machine would replace an old piece of equipment that costs $18,000 per year to operate. The new machine would cost $8,000 per year to operate. The old machine currently in use could be sold now for a scrap value of $26,000. The new machine would have a useful life of 10 years with no salvage value.

1. Compute the simple rate of return on the new automated bottling machine.

Choose Numberator:	/	Choose Denominator:	=	Simple Rate of Return
	/		=	Simple Rate of Return
	/		=	?%