A project costing is Rs, 2, 00,000 and has scrap value of Rs. 20,000. Its stream of income before depreciation and taxes during five years is Rs. 40,000, Rs. 48000, Rs. 56,000, Rs. 64,000 and Rs. 72,000. Assume a 50% tax rate and depreciation on straight line basis. Calculate the accounting rate on original cost for the project.
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