Arroy Snackfoods is considering replacing a five year old machine that originally cost $50,000. It is being depreciated using straight line to an expected value of $0.00 over its 10 year life, but could be sold now for $40,000. The replacement machine would cost $190,000 and have a five year expected life and is also being depreciated using the straight line method with an expected salvage value of $0.00. The actual expected salvage value for the new machine is $20,000. The new machine is expected to operate much more efficiently, saving $6,000 per year in energy costs. In addition it will allow the elimination of one salaried employee saving another $54,000 per year. The firms marginal tax rate is 35% and the cost of capital is 7.5%. At what discount rate would you be indifferent between keeping the existing equipment and purchasing the new equipment?