Cardinal Company is considering a project that would require a $2,865,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $300,000. The companys discount rate is 12%. The project would provide net operating income each year as follows: Sales $ 2,869,000 Variable expenses 1,126,000 Contribution margin 1,743,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 709,000 Depreciation 513,000 Total fixed expenses 1,222,000 Net operating income $ 521,000 Required: If the equipments salvage value was $500,000 instead of $300,000, what would be the projects simple rate of return?