Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)

Investment required in equipment	$640,000
Annual cash inflows	$86,000
Salvage value	$0
Life of the investment	20 years
Discount rate	9%

The simple rate of return on the investment is closest to: (Round your answer to the closest interest rate.)

a. 13%

b. 9%

c. 8%

d. 5%