Average rate of return$-$cost savings employee who has an average wage of $$21,735$ per year. In addition, the equipment will have operating and energy costs of $$6,310$ 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.

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Divide the estimated average annual income by the average investmept. Average savings less depreciation expense less additional operating costs equals average annual income.