Average Rate of Return Clancy Company is considering the purchase of equipment for $100,000. The equipment will expand the companys production and increase revenue by $30,000 per year. Annual cash operating expenses will increase by $8,000. The equipments useful life is 10 years with no salvage value. Clancy uses straight-line depreciation. The income tax rate is 35%. What is the average rate of return on the investment?

Do not use negative signs with your answers.

Increase in revenue	$Answer
Increase in expenses	Answer
Pretax income from investment	Answer
Income tax expense	Answer
Net income from investment	$Answer

Round answer to the nearest whole percentage, if applicable.

Average rate of return on investment

Answer%