Dickerson Co. is evaluating a project requiring a capital expenditure of $810,000. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows:

Year Net Income Net Cash Flow
1 $75,000 $285,000
2 100,000 290,000
3 109,000 190,000
4 36,000 125,000
$320,000 $890,000

The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively.

Required:

Determine the average rate of return on investment, including the effect of depreciation on the investment. Round your answer to one decimal place.