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: Cost Old Equipment Accumulated depreciation Remaining life Current salvage value Salvage value in 8 years Annual cash operating costs $81,840 $41,000 8 years $11,200 $0 $35,700 Cost New Equipment Estimated useful life Salvage value in 8 years Annual cash operating costs $38,000 8 years $4,600 $30,700 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. SUPP

Bramble inc, is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been coltected on thits investment: 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. Calculate the annual rate of return. (Round answer to 2 decimal places, es. 15.25\%,)