(Ignore income taxes in this problem.) Overland Corporation has gathered the following data on a proposed investment project:

Investment required in equipment $ 410,000 Annual cash inflows $ 60,000 Salvage value of equipment $ 0 Life of the investment 16 years Required rate of return 9 %

The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.

The simple rate of return on the investment is: (Round your answer to the nearest interest rate.)

9%

8%

5%

13%