Average Rate of Return-New Product Micro Tek 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 5,800 units at $191 per unit. The equipment has a cost of $647,300, residual value of $48,700, 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 $30.00 Direct materials 116.00 Factory overhead (including depreciation) 20.40 Total cost per unit $166.40 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %