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 company's discount rate is 16%. The project would provide net operating income each year as follows: Sales Variable expenses Fixed expenses: $2,855,000 1,010,000 Contribution margin 1,845,000 Advertising, salaries, and other fixed out-of-pocket $798,000 482,400 Total fixed expenses 1,280,400 $ 564,600 costs Depreciation Net operating income. Required: If the equipment's salvage value was $600,000 instead of $400,000, what would be the project's simple rate of return? (Round your answer to 2 decimal places.) Simple rate of return %