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An initial investment of $ 4 0 , 0 0 0 in Sunland's Bunks is expected to pay off greatly - but not equally -

An initial investment of $40,000 in Sunland's Bunks is expected to pay off greatly-but not equally-in each of the next 5 years. The company expects a small increase in operating income in year 1 of $4,875, but then steadily larger improvements in profitability in years 2-5 : $9,000,$18,125,$20,500, and $25,125, respectively. The year prior to this investment, the company's ARR was 9%, and its tax rate was 20%.
What level of ARR does this projection provide? (Round answer to 2 decimal places, e.g.15.25%.)
ARR %
Is it likely that the company will move forward with this investment?
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