Scott Smith just bought a new StreamLink machine which will be depreciated on a straight-line basis to a book value of $47,000 at the end of its four-year life. During the first two years, the net income associated with the machine is expected to be $14,400 and $17,650, respectively. During the last two years, the net income associated with the equipment is expected to be $22,500 and $14,300, respectively. What is the average-accounting return associated with the StreamLink machine? Please note that Scott paid $145,000 for the machine.

Multiple Choice

• 9.50%

• 23.74%

• 21.48%

• 17.93%

• 19.21%