Cardinal Company is considering a project that would require a $2,810,000 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 $500,000. The companys discount rate is 16%. The project would provide net operating income each year as follows: Sales $ 2,847,000 Variable expenses 1,121,000 Contribution margin 1,726,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 782,000 Depreciation 462,000 Total fixed expenses 1,244,000 Net operating income $ 482,000 Required:

If the equipments salvage value was $700,000 instead of $500,000, what would be the projects simple rate of return? (Round your answer to 2 decimal places.)