Average Rate of Return-Cost Savings Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $83,000 value and a ten-year life. The equipment will replace one employee who has and energy costs of $4,030 per year Determine percent with a $7,000 residual an average wage of $14,780 per year. In addition, the equipment will have operating the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole 18 % Feedback Check My Work Divide the estimated average annual income by the average in average annual income. Learning Objective 2 vestment. Average savings less depreciatio n expense less additional operating costs equals