Cardinal Company is considering a five-year project that would require a $2,805,000 investment in equipment with a useful life of five years and no salvage value. The companys discount rate is 14%. The project would provide net operating income in each of five years as follows: Sales $ 2,741,000 Variable expenses 1,125,000 Contribution margin 1,616,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 642,000 Depreciation 561,000 Total fixed expenses 1,203,000 Net operating income $ 413,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Foundational 12-15 (Algo) 15. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 50%. What was the projects actual simple rate of return? (Round your answer to 2 decimal places.)