Micro Tek Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 5,000 units at $237 per unit. The equipment has a cost of $418,500, residual value of $31,500, and an eight-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor Direct materials $40.00 155.00 Factory overhead (including depreciation) 25.80 Total cost per unit $220.80 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %