Overland Corporation has gathered the following data on a proposed investment project:

Investment required in equipment	$	630,000
Annual cash inflows	$	64,000
Salvage value of equipment	$	0
Life of the investment		15	years
Required rate of return		6	%

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 is: (Round your answer to the nearest interest rate.)

a. 3%

b. 4%

c. 8%

d. 5%