Assume that you are thinking about starting your own small business. You have made the following estimates regarding this opportunity:

You can rent a location for your business at a cost of $$36,000$ per year.

The equipment costs incurred to start the business would total $$250,000.$ The equipment would have a $5-$year useful life and a salvage value of $$25,000.$

Your company$$s estimated sales per year would equal $$350,000$ and its variable cost of goods sold would be $30\%$ of sales.

Other operating costs would include $$73,000$ per year in salaries, $$4,000$ per year for insurance, $$25,000$ per year for utilities, and a $3\%$ sales commission.

The simple rate of return for this investment opportunity is closest to: