Pocket Pilot Inc. is considering an investment in new equipment that will be used to manufacture a mobile communications device. The device is expected to generate additional annual sales of 6,000 units at $280 per unit. The equipment has a cost of $640,000, residual value of $50,000, and an 8-year life. The equipment can only be used to manufacture the device. The cost to manufacture the device is shown below.
Determine the average rate of return on the equipment. If required, round to the nearest whole percent.