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 5,500 units at $306 per unit. The equipment has a cost of $613,800, residual value of $46,200, 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		$52.00
	Direct materials		203.00
	Factory overhead (including depreciation)		34.80
		Total cost per unit	$289.80

Determine the average rate of return on the equipment. If required, round to the nearest whole percent. fill in the blank 1 %