Assume that the cost of certain equipment that a business is considering purchasing is $100,000. The equipment will be depreciated over five years, at which point the salvage value is expected to be $8,000. Anticipated after-tax profits (losses) are as follows:

Compute the accounting return on the proposed investment. Round percentage to one decimal place.

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Year 1 2345T 3 After-Tax Profits/Losses $(10,000) 20,000 25,000 35,000 20,000