Cardinal Company is considering a project that would require a $2,792,000 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 $400,000. The company's discount rate is 14%. The project would provide net operating income each year as follows: Sales 2,875,000 $ Variable expenses 1,124,000 1,751,000 Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 721,000 478,400 Total fixed expenses 1,199,400 Net operating income $ 551,600 11.If the equipment's salvage value was $600,000 instead of $400,000, would you expect the project's net present value to be higher than, lower than, or the same? Same Higher Lower value: 1.00 points Required information 12.If the equipment's salvage value was $600,000 instead of $400,000, what would be the project's simple rate of return? (Round your answer to 2 decimal places. (i.e 0.1234 should be entered as 12.34.)) Simple rate of return %