ch 11 q 2

Average Rate of Return-New Product Galactic inc is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate add tional annual sales of 6,700 units at \\( \\$ 259 \\) per unit. The equipment has a cost of \\( \\$ 685,400 \\), residual value of \\( \\$ 51,600 \\), and an eight-year life. The equipment can oniy be used to manufacture the phone. The cost to manufacture the phone follows: Determine the average rate of retum on the equipment. If required, round to the nearest whole percent