Whema Ltd is interested in expanding its operations into Durban, South Africa and are looking to invest in offices there. The following information has been extracted from the reports relating to the project: Investment R1 500 000 Average annual profit R450 000 Life span 5 years Minimum required rate of return 15% Net Cash flows: 1st year R550 000 2nd year R600 000 3rd year R680 000 4th year R700 000 5th year R780 000 Required: 1.1 Calculate the accounting rate of return. (Express the answer to two decimal places).