Project A requires a $400,000 initial investment for new machinery with a five-year life and a salvage value of $41,500. Project A is expected to yield annual income of $25,800 per year and net cash flow of $100,000 per year for the next five years. Compute Project A's accounting rate of return. Accounting Rate of Return Numerator: Denominator: Accounting Rate of Return + Accounting rate of return