The following data relate to an investment in a new machine:

Initial investment RM 100 000

Expected salvage value RM 10 000

Useful life 5 years

Calculate the accounting rate of return for the above project

\begin{tabular}{|c|c|} \hline Year & After tax profits (RM) \\ \hline 1 & 3500 \\ \hline 2 & 4500 \\ \hline 3 & 4000 \\ \hline 4 & 4500 \\ \hline 5 & 5000 \\ \hline \end{tabular}