Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $121,920. It will have a useful life of 4 years and no salvage value. Annual revenues would increase by $79,700, and annual expenses (excluding depreciation) would increase by $39,800. Wayne uses the straight-line method to compute depreciation expense. The companys required rate of return is 12%. Compute the annual rate of return.