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 3,700 units at $237 per unit. The equipment has a cost of $412,900, residual value of $31,100, 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 $39.00 Direct materials 152.00 Factory overhead (including depreciation) 26.80 Total cost per unit $217.80 Determine the average rate of return on the equipment. If required, round to the nearest whole percent.Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $88,000 $96,000 Useful life 4 years 7 years Estimated residual value 0 Estimated total income over the useful life $9,680 $33,600 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A % Project ZCash Payback Period for a Service Company Jane's Clothing Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $100,000 and each with an eight-year life and expected total net cash flows of $200,000. Location 1 is expected to provide equal annual net cash flows of $25,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $45,000 Year 2 34,000 Year 3 21,000 Year 4 32,000 Year 5 24,000 Year 6 18,000 Year 7 14,000 Year 8 12,000 Determine the cash payback period for both location proposals. Location 1 X years Location 2 4 X years