A company is considering buying a new machine at a cost of $110,400 that will be operated for four years, after which time it will be sold for an estimated $9,600. The firm uses a straight-line policy for depreciation. Forecast operating profits to be generated by the machine are as follows: $39,600 in year 1, $19,600 in year 2, $22,400 in year 3 and $32,400 in year 4. Calculate the accounting rate of return as average annual profits divided by