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Cardinal Company is considering a five-year project that would require a $3,025,000 investment in equipment with a useful life of five years and no salvage value. The companys discount rate is 16%. The project would provide net operating income in each of five years as follows:

Sales		$ 2,737,000
Variable expenses		1,001,000
Contribution margin		1,736,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$ 610,000
Depreciation	605,000
Total fixed expenses		1,215,000
Net operating income		$ 521,000

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 projects actual simple rate of return? (Round your answer to 2 decimal places.)