The annual profit forecast for a project is: £ £ Sales 160,000 Labour, materials, and overheads 46,000 Depreciation 24,000 70,000 Net profit before tax 90,000 The project requires that a new machine be purchased for £128,000. It will be depreciated using the straight line method over five years to a residual value of £8,000. The project will cease when the machine is sold for £8,000 at the end of the fifth year. Ignoring taxation, what is the accounting rate of return? (No additional working capital is required for this project.)