Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $230,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $36,000 per year to operate and maintain, but would save $75,000 per year in labor and other costs. The old machine can be sold now for scrap for $23,000. The simple rate of return on the new machine is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

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The Answer of Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $230,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $36,000 per year to operate and maintain, but would save $75,000 per year in labor and other costs. The old machine can be sold now for scrap for $23,000. The simple rate of return on the new machine is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)

Denny Corporation Is Considering Replacing a Technologically Obsolete Machine with a New