The following data relate to a company's decision on whether to purchase a machine:

Cost.$ 180,000 Salvagevalue. 15,000 Annual after-tax netincome. 40,000 The machine's accounting rate of return, assuming the even receipt of its net cash flows dur¬ ing the year and use of straight-line depreciation, is

(a) 22%, (6) 41%, or

(c) 21%.