A piece of equipment costing $57,500 is being considered for a production process at Dew Chemicals. The expected benefits per year are $4,500 and estimated salvage value is $10,000. Determine the rate of return the company can get in this equipment proposal. Equipment life = 15 years.
a. 3.58%
b. 5.96%
c. 3.12%
d. 4.92%