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 6,000 units at $268 per unit. The equipment has a cost of $558,000, residual value of $42,000, and an 8-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 $46.00 179.00 30.50 $255.50 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. 0.13 x %