Average Rate of Return-Cost Savings Maul Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $137,000 with a $12,000 residual value and a five-year life. The equipment will replace one employee who has an average wage of $44,955 per year. In addition, the equipment will have operating and energy costs of $13,250 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.