15 Walters Ltd is considering replacing a packaging machine. The cost on 1.1.2023 will be E4.5m. The expected economic life of the machine will be 4 years. The company depreciates its equipment using the straight-line methods. The company expects to sell this equipment for 400,000, after the end of its useful economic life. There are expected cost savings arising from this investment of El,650,000 in each of years 1 and 2 and 1,800,000 in each of years 3 and 4. You can assume that all cash flows occur on the final day of the year to which they relate, unless otherwise stated. What is the accounting rate of retum using the average investment? Select one answer: 28.6% 12.5% 15.0% 33.3%