(Ignore Income Taxes in This Problem

(Ignore income taxes in this problem.) An expansion at Fey,Inc.,would increase sales revenues by $150,000 per year and cash operating expenses by $47,000 per year.The initial investment would be for equipment that would cost $328,000 and have a 8 year life with no salvage value.The annual depreciation on the equipment would be $41,000.The simple rate of return on the investment is closest to:

A) 41.3%
B) 18.9%
C) 12.5%
D) 31.4%