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 $153,900. The equipment will have an initial cost of $585,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $225,000, what is the accounting rate of return? Ignore income taxes. Multiple Choice 27.98%. 11.50% 14.00% 26.31%