United, Inc., is considering a capitala budgeting project that would have an eight year life and would require a $1,000,000 investment in equipment. Current equipment could be salvaged now for $300,000. This project would also require $100,000 of new working capital. At the end of ten years, the project would terminate and the new equipment would have $150,000 salvage value. The project has the following additional financial data:

Annual Sales	$600,000
Annual Net Operating Income	$112,000
Annual Depreciation	$106,250
Required Rate of Return	12%

What is the simple rate of return for this project (nearest %)