Quip Corporation wants to purchase a new machine for $285,000. Management predicts that the machine will produce sales of $290,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $89,000 per year. The firm uses straight-ine depreciation with an assumed residual (salvage) value of $50,000. Quip's combined income tax rate, t is 40%. What is the annual accounting (book) rate of return (ARR) for the proposed investment, based on the initial investment? (Round answer to nearest whole percentage.) 35%. 42%. 38%. 30%. 32%