cullumber corporation management is considering purchasing a machine that will cost 117,250 and will be depreciated on straight line basis for over five year period. The sales and expenses excluding depreciation for the next five years are shown in the following table the companies tax rate is 34%.

callumber will except all projects that provide an accounting rate of return of at least 45%.

calculate accounting rate of return:________

Year 1 Year 2 Year 3 Year 4 Year 5 Sales $128,450 $172,875 $248,455 $252,440 $262,125 Expenses $137,410 $130,488 $139,289 $142,112 $134,556