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

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

10%

25%

15%

35%