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Cardinal Company is considering a project that would require a $2,805,000 investment in equipment with a useful life of five years. At the end of

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Cardinal Company is considering a project that would require a $2,805,000 investment in equipment with a useful life of five years. At the end of five yoars, the project would teminate and the equipment would be sold for its salvage value of $400,000. The company's discount rate is 14%. The project would provide net operating income cach year as follows: 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 onswer to 2 decimel ploces.)

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