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Average Rate of Return (I don't understand this question! Please help!) Average Rate of Return New Product Pocket Pilot Inc. is considering an investment in

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Average Rate of Return New Product Pocket Pilot Inc. is considering an investment in new equipment that will be used to manufacture a mobile communications device. The device is expected to generate additional annual sales of 4,300 units at $274.00 per unit. The equipment has a cost of $439,900, residual value of $33,100, and an eight-year life. The equipment can only be used to manufacture the device. The cost to manufacture the device is shown below. Cost per unit: $46.00 Direct labor 178.00 Direct materials 29.65 Factory overhead (including depreciation) $253.65 Total cost per unit Determine the average rate of return on the equipment. If required, round to the nearest whole percent

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