Accounting Rate of Return WeCare Clinic is planning on investing in some new echocardiogram equipment that will require an initial outlay of $140,000. The system has an expected life of five years and no expected salvage value. The investment is expected to produce the following net cash flows over its life: $84,000, $70,000, $86,000, $93,000, and $109,000. Required: 1. Calculate the annual net income for each of the five years. Year 1 Net Income Year 2 Year 3 Year 4 Year 5 2. Calculate the accounting rate of return. Enter your answer as a whole percentage value (for example, 16% should be entered as "16"). % 3. What if a second competing revenue-producing investment has the same initial outlay and salvage value but the following cash flows (in chronological sequence): $109,000, $109,000, $109,000, $84,000, and $15,500? Calculate its accounting rate of return. Enter your answer as a whole percentage value (for example, 16% should be entered as "16"). Using the accounting rate of return metric, which project should be selected: the first or the second? Why might the second project be preferred over the first project?