Average Rate of Return$-$New Product

Micro Tek Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of $4,000$ units at $$450$ per unit. The equipment has a cost of $$3,950,000,$ residual value of $$50,000,$ and an $8-$year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows:

Cost per unit:

$\backslash$table$[[$Direct labor,$$20$