Project A requires a $420,000 initial investment for new machinery with a five-year life and a salvage value of $42,500. Project A is expected to yield annual income of $25,000 per year and net cash flow of $105,000 per year for the next five years. Compute Project A's accounting rate of return. Numerator: Accounting Rate of Return Denominator: Accounting Rate of Return Annual income Average investment Accounting rate of return 25,000/84000 I