Average Rate of Return$$

Lakeland Company is considering the purchase of equipment for

$$150,000.$ The equipment will expand the Company's production and

increase revenue by $$40,000$ per year. Annual cash operating

expenses will increase by $$10,000.$ The equipment's useful life is

$10$ years with no salvage value. Lakeland uses straight$-$line

depreciation. The income tax rate is $35\%.$ What is the average rate

of return on the investment?Do not use$$negative signs with your answers. $$

Round answer to the nearest whole percentage, if applicable.Average rate of return on investmentAnswer$\%$