Project A requires a $370,000 initial investment for new machinery with a five-year life and a salvage value of $39,000. Project A is expected to yield annual income of $20,700 per year and net cash flow of $92,500 per year for the next five years. Compute Project A's accounting rate of return. Accounting Rate of Return Denominator Average investment Numerator: Annual pre-tax income = Accounting Rate of Return Accounting rate of retum