Information for two alternative projects involving machinery investments follows:

	Project 1	Project 2
Initial investment	$ (131,000)	$ (101,000)
Salvage value	0	11,000
Annual income	16,375	14,560

a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred?

Information for two alternative projects involving machinery investments follows: Initial investment Salvage value Annual income Project 1 $ (131,000) 0 16,375 Project 2 $ (101,000) 11,000 14,560 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 1 Denominator: Numerator: = Accounting rate of return 0 Project 1 Project 2 0 (Required A Required B > Information for two alternative projects involving machinery investments follows: Initial investment Salvage value Annual income Project 1 $ (131,000) 0 16,375 Project 2 $ (101,000) 11,000 14,560 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 Based on accounting rate of return, which project is preferred? Based on accounting rate of return, is preferred.