Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $144,200. The equipment will have an initial cost of $515,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $11,000, what is the accounting rate of return?

28.00%

45.11%

17.28%

150.37%