Mahtomedi Corporation is considering investing in specialized equipment costing $240,000. The equipment has a useful life of five years and a residual value of $20,000. Depreciation is calculated using the straight line method. The expected net cash inflows from the investment are as follows:
Year 1 $60,000
Year 2 90,000
Year 3 110,000
Year 4 40,000
Year 5 25,000
Total cash inflows $325,000
Mahtomedi Corporation's required rate of return on investments is 14%.
What is the accounting rate of return on the investment?