Lakeland Company is considering the purchase of equipment for $175,000. The equipment will expand the Company's production and increase revenue by $40,000 per year. Annual cash operating expenses will increase by $12,000. The equipment's useful life is 10 years with no salvage value. Lakeland uses straight-line depreciation. The income tax rate is 25%. What is the average rate of return on the investment? Do not use negative signs with your answers. Increase in revenue Answer 40000 Increase in expenses Answer -12000 Pretax income from investment Answer Income tax expense Answer Net income from investment Answer 7857 Round answer to the nearest whole percentage, if applicable. Average rate of return on investment Answer 9 %