Information for two alternative projects involving machinery investments follow. The accounting rate of return for Project 1 is:

Year	Project 1	Project 2
Initial investment	$ (290,000)	$ (230,000)
Salvage value	0	25,000
Annual income	43,500	29,000

Question 26 Select one:

a.

23.2%.

b.

11.6%.

c.

15.0%.

d.

30.0%.

e.

25.2%.