Average Rate of Return Lakeland Company is considering the purchase of equipment for $157,000. The equipment will expand the Company's production and increase revenue by $48,000 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.

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

Round answer to the nearest whole percentage, if applicable.

Average rate of return on investment: Answer %