Dartis Company is considering investing in a specialized equipment costing $600,000. The equipment has a useful life of 5 years and a residual value of $60,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below.
Year 1 $200,000
2 150,000
3 160,000
4 95,000
5 75,000
$680,000
What is the accounting rate of return on the investment?