Equipment is purchased at a cost of $20,000. Wages will be reduced by $16,000 per year; annual cash expenses will increase by $8,000; straight-line depreciation is used; the asset has a five-year life; the salvage value is $4,000. Use the following formula: Accounting rate of return (average annual net cash flows-annual depreciation expense)/Initial Investment What is the accounting rate of return? Multiple Choice 45% 15% 33% 24%