eBook Accounting Rate of Return WeCare Clinic is planning on investing in some new echocardiogram equipment that will require an initial outlay of $150,000. The system has an expected life of five years and no expected salvage value. The investment is expected to produce the following net cash flows over its life: $79,000, $72,000, $89,000, $82,000, and $103,000. Required: 1. Calculate the annual net income for each of the five years. Net Income Year 1 Year 2 Year 3 Year 4 Year 5. 2. Calculate the accounting rate of return. Enter your answer as a whole percentage value (for example, 16% should be entered as "16"). % 3. What if a second competing revenue-producing investment has the same initial outlay and salvage value but the following cash flows (in chronological sequence): $103,000, $103,000, $103,000, $79,000, and $18,5007 Calculate its accounting rate of return. Enter your answer as a whole percentage value (for example, 16% should be entered as "16"). Using the accounting rate of return metric, which project should be selected: the first or the second? Check My Work All work saved. Previous Next> Email Instructor Save and Exit Submit Assignment for Grading