An expansion at Fidell, Inc., would increase sales revenues by $70,000 per year and cash operating expenses by $33,000 per year. The initial investment would be for equipment that would cost $130,000 and have a 5 year life with no salvage value. The annual depreciation on the equipment would be $20,000. The simple rate of return on the investment is closest to:

25.7%

13.1%

33.1%

19.0%