Transport Ltd is considering fitting a mounted forklift to each of its five delivery trucks. They

have decided to base their decision on the accounting rate of return and provide you with the

following information:

The cost of the mounted forklifts will be $95,000$ and they are expected to have a five year

life with a scrap value of $5,000.$ The purchase of the forklifts is expected to result in a

$10,000$ cash inflow in the first year and cash inflows of $40,000,40,000,60,000$ and

$45,000$ in years two to five respectively.

Determine the forklifts accounting rate of return.