calculte the anuual rate of return

Magenta 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 $80,240 Cost $38,000 Accumulated depreciation $40,300 Estimated useful life 8 years Remaining life 8 years Salvage value in 8 years $4,800 Current salvage value $9,920 Annual cash operating costs $29,900 Salvage value in 8 years $0 Annual cash operating costs $35,100 Depreciation is $10,030 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 $4,800. x Your answer is incorrect. Try again. Calculate the annual rate of retum. (Round answer to 2 decimal places, e.g. 15.25%.) Annual rate of return 8.64% By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Po