Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: Sales $2, 735, 000 Variable expenses 1,000, 000 Contribution margin 1, 735, 000 Fixed expenses: Advertising, salaries, and other out-of- pocket costs $735,000 Depreciation 595,000 Total fixed expenses 1, 330,000 Net operating income $ 405,000 (Hint. Use Microsoft Excel to calculate the discount factor(s).) 14. Assume a post-audit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the project's actual simple rate of return? (Round your answer to 2 decimal places. i.e. 0.12342 should be considered as 12.34%.) Simple rate of return :%