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Information for two alternative projects involving machinery investments follows: Initial investment Salvage value Annual income Project 1 $ (126,000) 0 15,120 Project 2 $ (96,000)

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Information for two alternative projects involving machinery investments follows: Initial investment Salvage value Annual income Project 1 $ (126,000) 0 15,120 Project 2 $ (96,000) 16,000 12,320 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 Compute accounting rate of return for each project. Accounting Rate of Return Denominator: Numerator: / Accounting rate of return 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 Compute accounting rate of return for each project. Numerator: Annual income Accounting Rate of Return Denominator: / Average investment 15,120 / 12,320 / Accounting rate of return $ 0 Project 1 Project 2 $ 0

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