The management of Simple Corporation is investigating replacing an old machine with a new, more efficient machine. The current salvage value of the old machine is $16,000, the cost of the new machine is $148,000 and the expected life of the new machine is 4 years. The new machine is expected to save the company $61,150 per year in cash operating costs. Annual depreciation on the machine would be $37,000. The simple rate of return on the investment is closest to