Question: Denny Corporation is considering replacing a technologically obsolete machine with a new state of the art numencally controlled machine. The new machine would cost $330,000

Denny Corporation is considering replacing a technologically obsolete machine with a new state of the art numencally controlled machine. The new machine would cost $330,000 and would have a twelve year useful life Unfortunately, the new machine would have no salvage value. The new machine would cost $56.000 per year to operate and maintain, but would save $92000 per year in labor and other costs. The old machine can be sold now for scrap for $33.000. The simple rate of return on the new machine is closest to donore income taxes (Round your answer to 1 decimal place)

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