please answer with explanation

Required information The following information applies to the questions displayed below] Cardinal Company is considering a five-year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin Pixed expenses 2,746,000 1,126,000 1,620,000 Advertising, salaries, and other fixed $615,000 583,000 out-of-pocket costs Depreciation 1,198,000 5 422,000 Total fixed expenses Net operating incone Click here to view Exhibit 138.1 and Exhibit 138-2. to determine the appropriate discount factorts) using table 15. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio which actually turned out to be 50%, what was the project's actual simple rate of return? (Round your answer to 2 decimal places.) 1% rate of return