(Ignore income taxes in
this problem.) The management of Rouleau Corporation is investigating
automating a process. Old equipment, with a current salvage value of $10,000,
would be replaced by a new machine. The new machine would be purchased for
$240,000 and would have a 6 year useful life and no salvage value. By
automating the process, the company would save $64,000 per year in cash
operating costs. The simple rate of return on the investment is closest to: