Watertown Paper Corporation is considering adding another machine for the manufacture of corrugated cardboard. The machine would cost exist900,000. It would have an estimated life of 6 years and no salvage value. The company estimates that annual revenue would increase by exist400,000 and that annual expenses excluding depreciation would increase by exist190,000. It uses the straight-line method to compute depreciation expense. Management has a required rate of return of 9% Compute the annual rate of return. Average investment = Annual rate of return =