Investment required in equipment

$$420,000$

Annual cash inflows

$$75,000$

Salvage value

$$0$

Life of the investment

$8$ years

Discount rate

$10\%$

Question $18(1$ point$)$

Shields Company has gathered the following data on a proposed investment project:

The simple rate of return on the investment is closest to:

$5\%.$

$)10\%.$

$15\%.$

$20\%.$