Sager Industries is considering an investment in equipment that will replace direct labor. The equipment has a cost of $$102,000$ with a $$9,000$ residual value and a $10-$year life. The equipment will replace three

employees who have average total wages of $$25,885$ per year. In addition, the equipment will have operating and energy costs of $$4,930$ per year.

Determine the average rate of return on the equipment, giving effect to straight$-$line depreciation on the investment.

$x\%$