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

Investment required in equipment	$ 30,500
Annual cash inflows	$ 6,200
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

20.7%

10.2%

18.7%

13.7%