Falcon Crest Aces $($FCA$),$ Incorporated, 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 $ $140,000$

Useful life $10$ years

Salvage value $ $10,000$

Annual net income generated $ $3,400$

FCA's cost of capital $6\%$

Assume straight line depreciation method is used.

Help FCA evaluate this project by calculating each of the following:

Required:

$1.$ Accounting rate of return.

Note: Round your answer to $2$ decimal places.