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The following data concerns a proposed equipment purchase: Cost $168,000 Salvage value $4,000 Estimated useful life 5 years Annual net cash flows $52,900 Depreciation method
| The following data concerns a proposed equipment purchase: |
| Cost | $168,000 |
| Salvage value | $4,000 |
| Estimated useful life | 5 years |
| Annual net cash flows | $52,900 |
| Depreciation method | Straight-line |
Assuming that net cash flows are received evenly throughout the year, the accounting rate of return is:
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