Jark Corporation Has Invested in a Machine That Cost $76,000

Multiple Choice

Jark Corporation has invested in a machine that cost $76,000, that has a useful life of eight years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of five years. Given these data, the simple rate of return on the machine is closest to (Ignore income taxes.) : (Round your answer to 1 decimal place.)

A) 3.9%
B) 5.0%
C) 7.5%
D) 32.5%