ABC Corporation is considering replacing a technology obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $275,000 and would have a 8-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $14,000 per year to operate and maintain, but would save $60,000 per year in labor and other costs. The old machine can be sold now for scrap for $11, 500. The simple rate of return on the machine is closest to: 22.5% 4.4% 9.75% 7.5% (Ignore income taxes in this problem.) A company with $525,000 in operating assets is considering the purchase of a machine costs $68,000 and which is expected to reduce operating costs by $16,000 each year. These reductions n cost occur evenly throughout the year. The payback