Question $6$

$5$ pts

Amber Company is considering a one$-$year project that requires an initial investment of $$500,000.$ However, to raise this capital, the company will incur flotation costs that are $2\%$ of the initial investment amount. At the end of the year, the project is expected to produce a cash inflow of $$588,000.$ What is the rate of return that the company expects to earn on this project after taking flotation costs into consideration?

Your answer should be between $7\mathrm{.}32$ and $16\mathrm{.}60,$ rounded to $2$ decimal places, with no special characters.