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Falcon Crest Aces (FCA), Incorporated, is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows:

Initial investment	$ 210,000
Useful life	10	years
Salvage value	$ 20,000
Annual net income generated	$ 4,800
FCA's cost of capital	7%

Assume straight line depreciation method is used.

Help FCA evaluate this project by calculating each of the following:

1. Accounting rate of return.

Note: Round your answer to 2 decimal places.