The management of Orebaugh Corporation is investigating automating a process by replacing old equipment by a new machine. The old equipment would be sold for scrap now for $18,200. The new machine would cost $494,500, would have a 5 year useful life, and would have no salvage value. By automating the process, the company would save $179,700 per year in cash operating costs.

Required:

Determine the simple rate of return on the investment. (Round your answer to 2 decimal places.)

Simple rate of return

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