I would like help in calculating the annual rate of return for this question, I have worked it out at 20.20 % and it's incorrect Waterway Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment:

Old Equipment				New Equipment
Cost		$81,680		Cost		$38,400
Accumulated depreciation		$40,300		Estimated useful life		8 years
Remaining life		8 years		Salvage value in 8 years		$5,000
Current salvage value		$10,680		Annual cash operating costs		$30,100
Salvage value in 8 years		$0
Annual cash operating costs		$35,700

Depreciation is $10,210 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $5,000.

1? Cal. Annual Rate

2) Calculate the net present value assuming a 15% rate of return. (Ignore income taxes.) (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.)