Arrowhead Inc. is considering an investment in new equipment that will be used to manufacture a mobile communications product. The product is expected to generate additional annual sales of $6,600$ units at $$178\mathrm{.}00$ per unit. The equipment has a cost of $$675,200,$ residual value of $$50,800,$ and an $8-$year life. The equipment only can be used to manufacture the product. The cost to manufacture the product is shown next.

Cost per unit:

Direct labor $$29\mathrm{.}00$

Direct materials $115\mathrm{.}00$

Factory overhead $($including depreciation$)19\mathrm{.}70$

Total cost per unit $$163\mathrm{.}70$

Determine the average rate of return on the equipment.