The Silverside Company is considering investing in two alternative projects: Project 2 Project 1 $500,000 Investment $240,000 Useful life (years) Estimated annual net cash inflows for useful life Residual value 8 7 $120,000 $40,000 $32,000 $10,000 Depreciation method Required rate of return Straight line Straight - line 8% 11% What is the accounting rate of return for Project 2? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.)