Assume that a company is considering a $2,500,000 capital investment in a project that would earn net income for each of the next five years as follows: Sales $ 1,900,000 Variable expenses 800,000 Contribution margin 1,100,000 Fixed expenses: Out-of-pocket operating costs $ 300,000 Depreciation 400,000 700,000 Net operating income $ 400,000 The project's simple rate of return is closest to: 24%%. 189% 16%