Wildhorse Company is considering a long$-$term investment project called ZIP. ZIP will require an investment of $$122,000.$ It will have a useful life of $4$ years and no salvage value. Annual revenues would increase by $$79,450,$ and annual expenses $($excluding depreciation$)$ would increase by $$39,800.$ Wildhorse uses the straight$-$line method to compute depreciation expense. The company's required rate of return is $12\%.$

Compute the annual rate of return.