Sweet Acacia 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 $80,640 Cost $38,400 Accumulated depreciation $40,500 Estimated useful life 8 years Remaining life 8 years Salvage value in 8 years $4,800 Current salvage value $10,560 Annual cash operating costs $29,600 Salvage value in 8 years $0 Annual cash operating costs $35,400 Depreciation is $10,080 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 $4,800. Calculate the annual rate of return. (Round answer to 2 decimal places, eg. 15.25%.) Annual rate of return Se