QS $24-6($Algo$)$ Accounting rate of return LO P$2$

Project A requires a $$430,000$ initial investment for new machinery with a five$-$year life and a salvage value

of $$44,500.$ Project $A$ is expected to yield annual income of $$22,100$ per year and net cash flow of $$107,500$

per year for the next five years.

Compute Project A$\text{'}$s accounting rate of return.