Exercise 11-5 (Static) Accounting rate of return LO P2 Information for two alternative projects involving machinery investments follows: Project 1 Project 2 Initial investment $ (120,000) $ (90,000) Salvage value 10,000 Annual Incone 15,000 12,000 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 Complete this question by entering your answers in the tabs below. Required A Required B Compute accounting rate of return for each project. Accounting Role of Return Denominator: Numerator: Project 1 Project 2 Accounting rate of return 0 0 Required B > Project $ (120,000) Initial investment Salvage value Annual income Project 2 $ (90,000) 10,000 12,000 15,000 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