Current Attempt in Progress

Cullumber is considering the purchase of equipment costing $$156000.$ The equipment has a $12-$ year useful life, has an estimated salvage value of zero, and is expected to generate $$32000$ in annual cash flows. The company has a $10\%$ required rate of return and uses the straight$-$line depreciation method. The accounting rate of return on this equipment is closest to

$10\mathrm{.}5\%.$

$10\mathrm{.}0\%.$

$12\mathrm{.}2\%.$

$20\mathrm{.}3\%.$