Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: Initial investment $ 310,000 Useful life $ 10 years Salvage value 25,000 Annual net income generated $ 6,800 FCA's cost of capital 7 % Assume straight line depreciation method is used.

help FCA evaluate this project by calculating each of the following: 1. Accounting rate of return. (Round your answer to 2 decimal places.)