Required information

[The following information applies to the questions displayed below.] Project A requires a $340,000 initial investment for new machinery with a five-year life and a salvage value of $47,000. The company uses straight-line depreciation. Project A is expected to yield annual net income of $21,100 per year for the next five years.

Compute Project As accounting rate of return.

Accounting Rate of Return
Choose Numerator	/	Choose Denominator	=	Accounting Rate of Return
Annual After Tax Net Income	/	Annual Average Investment	=	Accounting Rate of Return