Machine is being depreciated by the straight-line method

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The Jackson Company has invested in a machine that cost $50,000, 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 in this problem.) (Round your answer to 1 decimal place.)

3.9%

5.0%

7.5%

32.5%

Reference no: EM131291969

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