Shelley Company uses the Accounting Rate of Return to help in making capital investment decisions. They give you the following information about the purchase of a new plant. The plant, a depreciable asset, has a 10-year life, will cost $2,000,000 with zero salvage value.

	Cash Revenues minus Cash Expenses
Years 1-3	$100,000 each year
Years 4-7	$200,000 each year
Years 8-10	$400,000 each year

The Accounting Rate of Return for the plant will be: