Question - The Jackson Company has invested in a machine that cost $75,000, that has a useful life of four 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 two years. Given these data, calculate the simple rate of return on the machine? (Ignore income taxes in this problem.)
25.0%
22.5%
75.0%
21.4%