Average Rate of Return-New Product Hana 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 4,700 units at $176 per unit. The equipment has a cost of $393,400, residual value of $29,600, 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:: Direct labor Direct materials Factory overhead (including depreciation) Total cost per unit $28.00 109.00 19.20 $156.20 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %