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

Investment required in equipment$40,000Annual cash inflows$10,000Salvage value of equipment$0Life of the investment15yearsRequired rate of return10%

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: