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The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $18,000, would be replaced by a new machine. The new machine would be purchased for $372.000 and would have a 6 year useful life and no salvage value. Note here that the total initial investment for the new equipment represents the net of the cost of the new equipment and the sale (salvage value of the old equipment. By purchasing the new equipment, the company would automate its process and save $129,000 per year in cash operating costs. The accounting rate of return on the investment is closest to ignore income taxes. 18.9% 16.7% 18.096 34.7%