Aero Serve, Inc., manufactures cleaning nozzles for reverse-pulse jet dust collectors. The company spent $40,000 on a

Question:

Aero Serve, Inc., manufactures cleaning nozzles for reverse-pulse jet dust collectors. The company spent $40,000 on a production control system that will increase profits by $13,400 per year for 5 years. The rate of return per year on the investment is closest to:
(a) 20%
(b) 18%
(c) 16%
(d) Less than 15%