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 5,100 units at $263 per unit. The equipment has a cost of $474,300, residual value of $35,700, 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		$45.00
	Direct materials		175.00
	Factory overhead (including depreciation)		29.50
		Total cost per unit	$249.50

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