Chee Corporation has gathered the following data on a proposed investment project:

Investment required in equipment	$240,000
Annual cash inflows	$50,000
Salvage value	$0
Life of the investment	8 years
Required rate of return	10%

The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment. The simple rate of return on the investment is closest to:

12.5%

10.0%

20.8%

8.3%