Your company is considering making an investment in equipment that will cost $500,000. The equipment is expected to provide incremental revenues of $90,000, and provide incremental expenses of $40,000 annually. The company requires a 8% return on investment. Calculate the accounting rate of return. Should the company purchase the equipment?

Your company is considering making an investment in equipment that will cost $500,000. The equipment is expected to provide incremental revenues of $90,000, and provide incremental expenses of $40,000 annually. The company requires a 8% return on investment. Calculate the accounting rate of return. Should the company purchase the equipment