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 $105,000 and the expected life of the new machine is 3 years. The new machine is expected to save the company $53,350 per year in cash operating costs. Annual depreciation on the machine would be $35,000. The simple rate of return on the investment is closest to: Multiple Choice 17.5% 20.6% 15.2% 50.8%