Oahu 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 5,600 units at $254 per unit. The equipment has a cost of $468,700, residual value of $35,300, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows:

Line Item Description	Amount
Cost per unit:
Direct labor	$42.00
Direct materials	165.00
Factory overhead (including depreciation)	28.10
Total cost per unit	$235.10

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