Average Rate of ReturnNew Product Galactic 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 6,500 units at $269 per unit. The equipment has a cost of $604,500, residual value of $45,500, and an eight-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor $45.00 Direct materials 175.00 Factory overhead (including depreciation) 30.50 Total cost per unit $250.50 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %