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Use the following information for the Quick Study below.

[The following information applies to the questions displayed below.] Peng Company is considering an investment expected to generate an average net income after taxes of $3,100 for three years. The investment costs $58,500 and has an estimated $8,100 salvage value.

QS 24-7 Computation of accounting rate of return LO P2

Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation.

Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return