The following relates to a proposed equipment purchase:

Initial investment	$ 159,200
Salvage value	$ 4,800
Estimated useful life	4	years
Annual net cash flows	$ 46,900
Annual depreciation expense	$ 38,600

The annual average investment amount used to calculate the accounting rate of return is:

Multiple choice

$79,600

$77,200

$39,800

$82,000

$56,150