Cardinal Company is considering a project that would require a $2,915,000 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 $300,000. The company's discount rate is 12%. The project would provide net operating income each year as follows: Required: If the equipment's salvage value was $500,000 instead of $300,000, what would be the project's simple rate of return? (Round your answer to 2 decimal places.)