ALGS Ltd. wants to purchase a new machine for $29,300, excluding $1,600in installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,000and ALGS Ltd. expects to sell it for that amount. The new machine would decrease operating costs by $8,200each year of its economic life. The straight-line depreciation method would be used for the new machine, for a five-year period with no salvage value.

Calculate the annual rate of return.(Round answer to 3 decimal paces, e.g. 12.512%.)