15 Walters Ltd is considering replacing a packaging machine. The cost on 1.1.2023 will be 4.5m. 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 1,650,000 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 return using the average investment? Select one answer: O 15.0% O 12.5% O 33.3% O 28.6%

Waiters Lto is considering replacing a packaging machine. The cost on 1.1 .2023 with be EA.5m: Tho expected ecomomic life of the machine will be 4 yecars. The compary depreciates its equipment usirg the straight-line methods. The company expects to sell this equipment for fu00,000, after the end of its usetul econornic ise. There are oxpected cost savings arising from this investment of E1,050,000 in each of yoars 1 and 2 and E1,800,000 in. each of youra 3 and 4 , You can aseume that all cash. fowh occur on the final day of the year to wheh they relate, unloss otherwise statod. What is the accounting rate of retum using the average invetitmont? Solect ofe answor: 15.0% 12.5% 33.3% 28.6%