Bramble Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment: Old Equipment New Equipment Cost $81,840 Cost $38,000 Accumulated depreciation $41,000 Estimated useful life 8 years Remaining life Current salvage value 8 years Salvage value in 8 years $11,200 $4,600 Annual cash operating costs $30,700 Salvage value in 8 years $0 Annual cash operating costs $35,700 Depreciation is $10,230 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $4,600. (b) Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%.) Annual rate of return %