Audra and Hazle are thinking about starting their own small business. They have made the following estimates regarding this opportunity:

They can rent a location for their business at a cost of $$37,000$ per year.

The equipment costs incurred to start the business would total $$310,000.$ The equipment would have a $7-$year useful life and a salvage value of $$30,000.$

Their company's estimated sales per year would equal $$410,000$ and its variable cost of goods sold would be $30\%$ of sales.

Other operating costs would include $$55,500$ per year in salaries, $$6,700$ per year for insurance, $$28,000$ per year for utilities, and a $4\%$ sales commission. The simple rate of return for Hazle and Audra's investment opportunity is closest to:

A $21\mathrm{.}7\%.$

$33\mathrm{.}4\%.$

$13\mathrm{.}3\%$

D $,41\mathrm{.}7\%.$