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Project A requires a $385,000 initial investment for new machinery with a five-year life and a salvage value of $48,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $20,500 per year for the next five years.

Compute Project A's accounting rate of return.

Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of return 0