Consider the following investment opportunity.

Initial cost $850,000 Annual revenues $500,000 Annual operating costs, exclusive of depreciation $200,000 Expected life 20 years Salvage value after taxes $40,000 Annual depreciation for tax purposes $25,000 Tax rate 34%

What is the rate of return on this investment? Assuming the investor wants to earn at least 12 percent, is this investment an attractive one?