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 $143,000. The equipment will have an initial cost of $550,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $18,000, what is the accounting rate of return?

148.37%

43.11%

15.28%

26.00%