Sheridan Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment: Old Equipment New Equipment Cost Cost $39,000 8 years $80,000 $40,000 8 years $9.800 Accumulated depreciation Remaining life Current salvage value Salvage value in 8 years Annual cash operating costs Estimated useful life Salvage value in 8 years Annual cash operating costs $4,400 $29,000 $0 $35.000 Depreciation is $10,000 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $4,400. x Your answer is incorrect, Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%.) 20.54 % Annual rate of return