Avenge Rate Return-Savings Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $137,000 with a $12,000 residual value and a fiveyear life. The equipment replace one employee who has an average wage of $46,445 per yearIn addition, the equipment will have operating and energy costs of $13,250 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. , round to the nearest whole percent.

Average Rate of Retur-Cost Savings Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $137,000 with a $12,000 residual value and a five-year life. The equipment will replace one employee who has an average wage of $46,445 per year. In addition, the equipment will have operating and energy costs of $13,250 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