Jordan Painting Company is considering whether to purchase a new spray paint machine that costs $4,400. The machine is expected to save labor, increasing net income by $660 per year. The effective life of the machine is 15 years according to the manufacturer's estimate.
Required:
Determine the unadjusted rate of return based on the average cost of the investment. (Enter your answer as a whole percentage, e.g. 0.55 should be entered as 55.)
Unadjusted rate of return.