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Average Rate of Return-Cost Savings Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $132,000 with a $11,000 residual value and a five-year life. The equipment will replace one employee who has an average wage of $47,755 per year. In addition, the equipment will have operating and energy costs of $12,830 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. Average Rate of Return-New Product Micro Tek Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 3,700 units at $172 per unit. The equipment has a cost of $309,700, residual value of $23,300, and an eight-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor $28.00 Direct materials 109.00 Factory overhead (including depreciation) 19.25 Total cost per unit $156.25 Determine the average rate of return on the equipment. If required, round to the nearest whole percent