6 nts eBook Print ferences W Help Save & Exit Cardinal Company is considering a project that would require a $2,915,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $300,000. The company's discount rate is 12%. The project would provide net operating income each year as follows: Sales Variable expenses Fixed expenses: costs Depreciation Contribution margin $2,746,000 1,126,000 1,620,000 Advertising, salaries, and other fixed out-of-pocket $ 615,000 523,000 Total fixed expenses 1,138,000 Net operating income $ 482,000 Required: If the equipment's salvage value was $500,000 instead of $300,000, what would be the project's simple rate of return? (Round your answer to 2 decimal places.) Simple rate of return % < Prev 6 of 6 Next Check my