Sales$2,735,000

Variable expenses1,000,000

Contribution margin1,735,000

Fixed expenses:

Advertising, salaries, and other

fixed out-of-pocket costs $735,000

Depreciation535,000

Total fixed expenses1,270,000

Net operating income$465,000

If the equipment's salvage value was $500,000 instead of $300,000, what would be the project's simple rate of return?(Round your answer to 2 decimal places. (i.e 0.1234 should be entered as 12.34.))