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Project A requires a $ 3 9 0 , 0 0 0 initial investment for new machinery with a five - year life and a

Project A requires a $390,000 initial investment for new machinery with a five-year life and a salvage value of $35,500. Project A is expected to yield annual income of $25,900 per year and net cash flow of $97,500 per year for the next five years.
Compute Project A's accounting rate of return.
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