Project A requires a $340,000 initial investment for new machinery with a five-year life and a salvage value of $42,000. The company uses straight-line depreciation. Project A is expected to yield annual net income of $27,800 per year for the next five years. Compute Project As accounting rate of return.

Choose Numerator: I Accounting Rate of Return Choose Denominator: Accounting Rate of Return Accounting rate of return