Exercise 11-5 (Algo) Accounting rate of return LO P2 Information for two alternative projects involving machinery investments follows: Initial investment Salvage value Annual income Project 21 Project 1 $ (128,000) $ (98,000) 0 18,000 14,080 11,600 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute accounting rate of return for each project. Accounting Rate of Return Numerator: Annual income Denominator Average investment = Accounting rate of return Project 11 S 14,080 $ 128,000 - 11. % Project 2 $ 11,600 / $ 116,000 10 % Ret