Rapp Hardware is adding a new product line that will require an investment of 1,512,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $300,000 the first year, $280,000 the second year, $260,000 each year there after for eight years. Assume the project has no residual value. Compute the ARR for the investment. Round to two places.

Average annual operating income = ___

/

Average amount invested = ___

= ___%