(Ignore income taxes in this problem.) Pam Corporation is contemplating purchasing equipment that would increase sales revenues by $438,000 per year and cash operating expenses by $258,000 per year. The equipment would cost $504,000 and have a 9 year life with no salvage value. The annual depreciation would be $56,000. Required: Determine the simple rate of return on the investment to the nearest tenth of a percent. Show your work!