Vilas Company is considering a capital investment of $191,300 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $13,600 and $49,400, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment. Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.50.)