Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $166,375. The equipment will have an initial cost of $530,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $195,000, what is the accounting rate of return? Ignore income taxes. 31.39%. 33.06%. 18.75%. 16.25%