(Ingore income taxes in this problem.) Oriental Company has gathered the following data on a proposed invesetment project:

Investment in depreciable equipment.................. $200,000

Annual net cash flows..........................................$50,000

Life of the equipment.............................................10 years

Salvage Value ......................................................$0

Discount rate.......................................................... 10%

The companyuses straight-line depreciation on all equipment.

The simple rate of return on the investment would be:

A. 10%

B. 35%

C. 15%

D. 25%