Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $$122,000$ with a $$10,000$ residual value and a $5-$year life. The equipment will replace one employee who has an average wage of $$42,190$ per year. In addition, the equipment will have operating and energy costs of $$11,870$ per year.

Determine the average rate of return on the equipment, giving effect to straight$-$line depreciation on the investment. If required, round to the nearest whole percent.