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 700 units at $294 per unit. The equipment has a cost of $669,600, residual value of $50,400, 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. % Average rate of return-cost savings Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $132,000 with a $11,000 residual value and a 10 -year life. The equipment will replace one employee who has an average wage of $27,805 per year. In addition, the equipment will have operating and energy costs of $6,410 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. %