Exercise 11-7 Accounting rate of return LO P2 A machine costs $200,000 and is expected to yield an after-tax net income of $5,000 each year. Management predicts this machine has a 10-year service life and a $40,000 salvage value, and it uses straight-line depreciation. Compute this machine's accounting rate of retum. Choose Numerator: Annual after-tax net income S 5,000 Accounting Rate of Return Choose Denominator: Annual average investment Accounting Rate of Return Accounting rate of return 1 /