Turner Hardware is adding a new product line that will require an investment of $1,418,000. Managers estimate that this investment will have a10-year life and generate net cash inflows of $ 310000 the firstyear, $ 265000 the secondyear, and $ 240000 each year thereafter for eight years. The investment has no residual value. Compute the ARR for the investment.

First, enter theformula, then compute the ARR of the new product line.

Average annual operating income from asset / initial investment = Accounting rate of return

Answer in percentage