Required Information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Peng Company is considering an investment expected to generate an average net income after taxes of $2,800 for three years. The investment costs $48,300 and has an estimated $10.500 salvage value. QS 24-7 Computation of accounting rate of return LO P2 Compute the accounting rate of return for this investment, assume the company uses straight-line depreciation. Choose Numerator: Annual after-tax net income $ Accounting Rate of Return Choose Denominator: Annual average investment 2,8001 Accounting Rate of Return Accounting rate of return 0 Required Information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Project A requires a $395,000 initial investment for new machinery with a five-year life and a salvage value of $48,000 The company uses straight-line depreciation Project A is expected to yield annual net income of $21,800 per year for the next five years. QS 24-6 Accounting rate of return LO P2 Compute Project A's accounting rate of return. Choose Numerator: Annual after-tax net income $ Accounting Rate of Return Choose Denominator: Annual average Investment Accounting Rate of Return Accounting rate of return 0 21,8007