Cardinal Company is considering a project that would require a $2,782,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $200,000. The companys discount rate is 18%. The project would provide net operating income each year as follows:

Sales $2,873,000Variable expenses 1,019,000Contribution margin 1,854,000Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs$754,000 Depreciation 516,400 Total fixed expenses 1,270,400Net operating income $583,600

Required: If the equipments salvage value was $400,000 instead of $200,000, what would be the projects simple rate of return? (Round your answer to 2 decimal places.)