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 5,200 units at $302 per unit. The equipment has a cost of $580,300, residual value of $43,700, 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		$52.00
	Direct materials		201.00
	Factory overhead (including depreciation)		34.60
		Total cost per unit	$287.60

Determine the average rate of return on the equipment. If required, round to the nearest whole percent. fill in the blank 1 %