Blaine Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $210,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $32,000 per year to operate and maintain, but would save $65,000 per year in labor and other costs. The old machine can be sold now for scrap for $21,000. What is the simple rate of return on the new machine? (Ignore income taxes.) (Round your answer to 2 decimal places.)

5.71%

6.35%

12.70%

30.95%