Metlock 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:

$\backslash$table$[[$Old Equipment,,New Equipment$],[$Cost$,$$$80,720,$Cost,$$38,400,],[$Accumulated depreciation,$$40,600,$Estimated useful life,$8$ years,$],[$Remaining life,$8$ years,Salvage value in $8$ years,$$4,600,],[$Current salvage value,$$9,900,$Annual cash operating costs,$$29,700,],[$Salvage value in $8$ years,$$0,,,],[$Annual cash operating costs,$$35,400,,,]]$

Depreciation is $$10,090$ per year for the old equipment. The straight$-$line depreciation method would be used for the new equipment over an eight$-$year period with salvage value of $$4,600.$

b$)$

Calculate the annual rate of return. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$

Annual rate of return $\%$

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