Determine the average rate of return on the equipment.If required, round to the nearest whole percent.

Micro Tek Inc. is considering an Investment in new equipment that will be used to manufacture a smartphone. The phone Is expected to generate additional annual sales of 4,700 units at $279 per unit. The equipment has a cost of $393,400, residual value of $29,600, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor $48.00 Direct materials 187.00 Factory overhead (lncludlng depreciatlon} 31.85 Total cost per unit $266.85 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %