Question 15 (3 points) Cardinal Company is considering a project that would require a $2,875,000 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 16%. The project would provide net operating income each year as follows: Sales Vanable expenses $ 2,871.000 1,018,000 1,853.000 Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 753,000 515.000 Total fixed expenses 1,268,000 Net operating Income $ 585.000 What is the project's simple rate of return for each of the five years? 20.40% 36.52% 36.57% 20.35%