Poly-Chem Plastics is considering two types of injection molding machines: hydraulic and electric. The hydraulic press (HP) will have a first cost of $600,000, annual costs of $200,000, and a salvage value of $70,000 after 5 years. Electric machine technology (EMT) will have a first cost of $800,000, annual costs of $120,000, and a salvage value of $130,000 after 5 years.

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Use an AW-based equation to determine the ROR on the extra investment required for the EMT alternative.

The ROR on the extra investment for the EMT alternative is %.