Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5-year period, the costs associated with one product line were as follows: first cost of $23,000, and annual costs of $18,000. Annual revenue was $25,000 and the used equipment was salvaged for $9,000. What rate of return did the company make on this product? The rate of return that the company made on the product is 7%