A project requires a $2,840,000 initial investment for new machinery with a five-year life and a salvage value of $308,000. The project is expected to yield annual income of $204,620 per year and net cash flows of $704,000 per year for the next five years. The projects accounting rate of return is:

• 6.6%.

• 19.6%.

• 23.3%.

• 46.1%.

• 13.0%.