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 4,400 units at $249 per unit. The equipment has a cost of $368,300, residual value of $27,700, 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 Direct materials Factory overhead (including depreciation) Total cost per unit $42.00 162.00 27.00 $231.00 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %