Terrell Corp. management is considering purchasing a machine that will cost $117,250 and will be depreciated on a straight-line basis over a five-year period. The sales and expenses (excluding depreciation) for the next five years are shown in the following table. The company's tax rate is 34 percent.

Terrell will accept all projects that provide an accounting rate of return (ARR) of at least 45 percent. Should the company accept the project?

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Yer Yar Year Year 5 S123,450 S176,875 S242,455 S255,440 S267,125 Expenses $137,410 S126,488 S141,289 S143,112 $133,556 Year 2 Year 3 Year 4 Sales