Old Southwest Canning Co. has determined that any one of fourmachines can be used in its chili-canning operation. The cost andrevenues of the machines are estimated below, and all machines havea 7-year life. If the minimum attractive rate of return is 10% peryear, determine the incremental rate of return of the lastcomparison on the basis of a rate of return analysis. (As of %)
| Machine | First Cost, $ | Annual Revenue, $ |
| 1 | ?105,000 | 21,000 |
| 2 | ?123,000 | 41,000 |
| 3 | ?312,000 | 78,000 |
| 4 | ?348,000 | 58,000 |
