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? O O Multiple Choice 15% 33% 45% 24%