Clancy Company is considering the purchase of equipment for $115,000. The equipment will expand the company's production

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Clancy Company is considering the purchase of equipment for
$115,000. The equipment will expand the company's production and
increase revenue by $37,500 per year. Annual cash operating
expenses will increase by $8,000. The equipment's useful life is 10
years with no salvage value. Clancy uses straight-line
depreciation. The income tax rate is 35%. What is the average rate
of return on the investment?
Do not use negative signs with your
answers.
Round answer to the nearest whole percentage, if applicable.
Average rate of return on investment
Answer%
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