ABC Company is considering the purchase of a new machine for $233,000. The machine is expected to generate annual net cash inflows totaling $38,500. The old machine that is currently in use can be sold for $9,000 if the new machine is purchased. The new machine has a useful life of ten years with a $6,000 salvage value. The accounting rate of return on the new machine is closest to: 5% 7% 9% 11% 13%