Coconut Co. has a machine that costs $160,000. The machine will be depreciated on a straight-line basis to a zero book value over their eight-year life. The machine is expected to generate net income of $16,000 a year for the first four years and $12,000 a year for the last four years. What is the average accounting rate of return?

20.00 percent

17.50 percent

22.25 percent

25.50 percent