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Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) Investment required in equipment $410,000 Annual cash inflows $60,000 Salvage
| Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) |
| Investment required in equipment | $410,000 |
| Annual cash inflows | $60,000 |
| Salvage value | $0 |
| Life of the investment | 16 years |
| Discount rate | 9% |
| The simple rate of return on the investment is closest to: (Round your answer to the closest interest rate.) |
5%
8%
13%
9%
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