Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $295,000 and to have a five-year life and no salvage value. It will be depreciated on a straight-line basis. Business Solutions expects to sell 100 units of the equipments product each year. The expected annual income related to this equipment follows.

Sales	$	379,000
Costs
Materials, labor, and overhead (except depreciation)		190,000
Depreciation on new equipment		59,000
Selling and administrative expenses		31,500
Total costs and expenses		280,500
Pretax income		98,500
Income taxes (35%)		34,475
Net income	$	64,025

Compute the accounting rate of return for this equipment.