Cardinal Company is considering a project that would require a $2,812,000 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 $400,000. The companys discount rate is 16%. The project would provide net operating income each year as follows:

Sales					$	2,855,000
Variable expenses						1,010,000
Contribution margin						1,845,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	798,000
Depreciation		482,400
Total fixed expenses						1,280,400
Net operating income					$	564,600

Required: If the equipments salvage value was $600,000 instead of $400,000, what would be the projects simple rate of return? (Round your answer to 2 decimal places.)