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 $3,500$ units at $$284$ per unit. The equipment has a cost of $$293,000,$ residual value of $$22,000,$ and an $8-$year life. The

equipment can only be used to manufacture the phone. The cost to manufacture the phone follows:

Determine the average rate of return on the equipment. If required, round to the nearest whole percent.