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%