D nces Exercise 11-5 (Algo) Accounting rate of return LO P2 Information for two alternative projects involving machinery investments follows Initial investment Project 1 $ (121,000) Salvage value Project 2 $ (91,000) 11,000 Annual income 14,520 12,750 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Compute accounting rate of return for each project. Project 11 Project 2 Numerator: Accounting Rate of Return Denominator: Required A Required B> Accounting rate of return Exercise 11-5 (Algo) Accounting rate of return LO P2 Information for two alternative projects involving machinery investments follows: Initial investment Project 1 $ (121,000) Project 2 $ (91,000) Salvage value 11,000 Annual income 14,520 12,750 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Based on accounting rate of return, which project is preferred? Based on accounting rate of return, is preferred < Required A Required B>