Galactic 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 6,000 units at $250 per unit. The equipment has a cost of $850,000, residual value of $50,000, and an eight-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows:

Cost per unit:
	Direct labor	$ 15.00
	Direct materials	134.00
	Factory overhead (including depreciation)	33.50
	Total cost per unit	$182.50

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