Required information [The following information applies to the questions displayed below.) Falcon Crest Aces (FCA), Inc., 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 $220,000 Useful life $ Salvage value 10 years 25,000 Annual net income generated $ 5,000 7% FCA's cost of capital Assume straight line depreciation method is used. Required: Help FCA evaluate this project by calculating each of the following: 1. Accounting rate of return. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Accounting Rate of Retur 8.98%