The management of Nixon Corporation is investigating purchasing equipment that would cost $$550,000$ and have a $7$ year life with no salvage value. The equipment would allow an expansion of capacity that would increase sales revenues by $$380,000$ per year and cash operating expenses by $$219,000$ per year. $($Ignore income taxes.$)$

Required:

Determine the simple rate of return on the investment. $($Round your answer to $1$ decimal place.$)$

Simple rate of return $$