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. Numerator: Answer is complete but not entirely correct. Accounting Rate of Return Denominator: Annual income Accounting Rate of Return Average investment Accounting rate of return 100,000 $ 220,750 45.30 %