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 $133,500. The equipment will have an initial cost of $534,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $9,000, what is the accounting rate of return?

147.37%

14.28%

42.11%

25.00%