Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $214,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $13,000 per year to operate and maintain, but would save $65,000 per year in labor and other costs. The old machine can be sold now for scrap for $24,000. What is the simple rate of return on the new machine? (Round off your answer to the nearest one-hundredth of a percent.)

rev: 04_30_2015_QC_CS-14593, 05_02_2015_QC_CS-14593

14.30%

34.38%

30.00%

16.11%