Legend Service Center just purchased an automobile hoist for $31,500. The hoist has an 8-year life and an estimated salvage value of $3,010. Installation costs and freight charges were $3,560 and $780, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 7 extra mufflers per week. Each muffler sells for $75 installed. The cost of a muffler is $36, and the labor cost to install a muffler is $16. (b) Compute the annual rate of return for the new hoist. (Round answer to 1 decimal place, e.g. 10.5.)

Annual rate of return

____________ %