Fanning Painting Company is considering whether to purchase a new spray paint machine that costs $4,000. The machine is expected to save labor, increasing net income by $800 per year. The effective life of the machine is 15 years according to the manufacturers estimate.

Required:

Determine the unadjusted rate of return based on the average cost of the investment. (Enter your answer as a whole percentage (e.g. .55 should be entered as 55).)