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 5,300 units at $208 per unit. The equipment has a cost of $443,600, residual value of $33,400, 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 $34.00 Direct materials 134.00 Factory overhead (including depreciation) 22.90 Total cost per unit $190.90 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %