Print Question 8 Partially correct Mark 1.00 out of 6.00 P Flag question Average Rate of Return Thompson Furniture is considering the purchase of equipment for $120,000. The equipment will expand the company's production and increase revenue by $30,000 per year. Annual cash operating expenses will increase by $7,000. The equipment's useful life is 10 years with no salvage value. Thompson uses straight-line depreciation. The income tax rate is 35%. What is the average rate of return on the investment? Do not use negative signs with your answers, Increase in revenue $ 30,000 Increase in expenses 7,000 x Pretax income from investment 23,000 x Income tax expense 8,050 x Net income from investment $ 14,950 X Round answer to the nearest whole percentage, if applicable. Average rate of return on investment 12.45 * % Check Partially correct Marks for this submission: 1.00/6.00