1. **State the problem:** Calculate the average Accounting Rate of Return (AROI) for John's Bakery expansion project. 2. **Formula for AROI:** $$\text{AROI} = \frac{\text{Average Annual Profit}}{\text{Initial Investment}}$$ 3. **Calculate the total profit over 5 years:** $$6585 + 15801 + 18315 + 19174 + 24524 = 84499$$ 4. **Calculate the average annual profit:** $$\frac{84499}{5} = 16899.8$$ 5. **Calculate the AROI:** $$\frac{16899.8}{117001} \approx 0.1444$$ 6. **Interpretation:** The average AROI is approximately 0.1444 (or 14.44% when expressed as a percentage).