Pharoah Company is considering a capital investment of $$152,000$ for a new machine. The new machine is expected to have a useful life of $5$ years with no salvage value. It is estimated that annual revenues would increase by $$68,100$ during the life of the machine. It is estimated that annual expenses during the life of the machine would increase by $$31,772,$ which does not include annual depreciation. Pharoah uses the straight$-$line method of depreciation. Pharoah's minimum acceptable rate of return on projects is $9\%.$

Calculate the annual rate of return on the proposed capital expenditure. $($Round answer to $2$ decimal places, eg$.15\mathrm{.}25\%)$

Annual rate of return

$\%$

Should Pharoah Company buy the machine