Peng Company is considering an investment expected to generate an average net income after taxes of $2,450 for three years. The investment costs…

Peng Company is considering an investment expected to generate an average net income after taxes of $2,450 for three years. The investment costs $55,500 and has an estimated $6,000 salvage value. Compute the accounting rate of return for this investment; assume the company uses straight-line depreciation.