Please help with the accounting rate of return method.

Case 6-25 Accounting Rate of Return Method of Evaluating Capital Expense You want to get approval for a capital expense to bring the copy service back in house. You estimate that it will bring in a net cash flow of $40,000 over the next 5 years. An initial outlay of $24,000 cash will be needed to for two networked, dedicated computers, and a new copy machine to support the Release of Information Staff you already have. 1. Use straight-line deprecation in calculating the average net income and enter the information in table 6-31. The accounting rate of return needs to be at least 10% for the project to be accepted. 6-31 Accounting Rate of Return Net cash flow per year Depreciation Average net income Investment Accounting rate of return on project Accounting Rate of Return Cash flowumber of years Costumber of years Net cash flow per year less depreciation Cost of project Average net income/investment 40,000/5=8,000 2. Will the accounting rate of return for the capital expense be acceptable? McCuen, C., Sayles, N. B., & McCuen, C. (2014). Case studies in health information management. Stamford, CT: Cengage Learning