Need help with figuring out Accounting rate of return . Lakeside Inc. is considering replacing old production equipment with state of the art technology that will allow production cost savings of $5,000 per month.The new equipment will have a five year life and cost $225,000, with an estimated salvage value of $30,000. Lakeside's cost of capital is 8%/ Lakeside uses a straight-line depreciation method.

Accounting Rate of Return?