Initial investment Salvage value Annual income Project 1 $ (139,000) Required A Required B 0 18,070 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. Project 1 Project 2 Project 2 $ (109,000) 19,000 17,280 Compute accounting rate of return for each project. Numerator: Accounting Rate of Return 1 1 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. Compute accounting rate of return for each project