(LO 10) A company buys a machine for $76,000 that has an expected life of 7 years and no salvage value. The company anticipates a yearly net income of $3,650 after taxes of 22%, with the cash flows to be received evenly throughout each year. What is the accounting rate of return?

Multiple Choice

• 4.80%.
• 9.61%.
• 2.11%.
• 7.50%.
• 33.62%.