Oriental Corporation has gathered the following data on a proposed investment 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 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 on the investment would be:

Multiple Choice

25%

35%

15%

10%