Calculate annual rate of return

Oriole Inc. is considering modernizing its production facility by investing in new equipment and selling the old following information has been collected on this investment: Old Equipment New Equipment Cost $81,200 Cost $39,600 Accumulated depreciation $41,900 Estimated useful life 8 years Remaining life 8 years Salvage value in 8 years $4,800 Current salvage value $10,620 Annual cash operating costs $30,000 Salvage value in 8 years $0 Annual cash operating costs $35,300 Depreciation is $10, 150 per year for the old equipment. The straight-line depreciation method would be used for over an eight-year period with salvage value of $4,800