J Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):

Investment required in equipment	$	33,500
Annual cash inflows	$	7,400
Salvage value of equipment	$	0
Life of the investment		15	years
Required rate of return		10	%

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 for the investment (rounded to the nearest tenth of a percent) is:

Multiple Choice

• 21.6%

• 11.2%

• 15.4%

• 24.7%