Hana 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 10,000 units at $300 per unit. The equipment has a cost of $4,500,000, residual value of $500,000, and a 10-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows:

Cost per unit:
	Direct labor	$ 18.00
	Direct materials	90.00
	Factory overhead (including depreciation)	112.00
	Total cost per unit	$220.00

Determine the average rate of return on the equipment.