Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: LO12-1, L012-2, L012-3, , LO12-5, 2 LO12-6 Sales $2,735,000 Variable expenses 1,000,000 Contribution margin 1,735,000 Fixed expenses: Advertising, salaries, and $735,000 other fixed out-of-pocket costs Depreciation 595,000 Total fixed expenses 1,330,000 Net operating income $ 405,000 If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's simple rate of return to be higher than, lower than, or the same as your answer to requirement 8? No computations are necessary