(Ignore income taxes in this problem.) Hinck Corporation is
investigating automating a process by purchasing a new machine for
$520,000 that would have an 8 year useful life and no salvage value. By
automating the process, the company would save $134,000 per year in cash
operating costs. The company’s current equipment would be sold for
scrap now, yielding $22,000. The annual depreciation on the new machine
would be $65,000.
What is the simple rate of return on the investment to the nearest tenth of a percent?