Blink 281 Corporation is considering an investment that will cost $120,000 and last for five years. The investment will be amortized on a straight-line basis over that period. Earnings generated by the investment before amortization and taxes over this period are as follows:

Year 1 $35,000

Year 2 37,000

Year 3 41,000

Year 4 45,000

Year 5 50,000

Blink 281 Corporation has a tax rate of 25 percent.

a.What is the AAR of this project?

AAR%