The Roger Company is planning to purchase a new machine at a cost of $660,000, which will depreciate on a straight-line basis over a 10-year period with $60,000 salvage value and a full year's depreciation taken in the year of acquisition. The new machine is expected to produce average annual before-tax net cash inflows of $132,000 a year in each of the next 10 years. The tax rate is 40%. The unadjusted rate of return would be:

A. 12%.

B. 13.8%.

C. 13.4%.

D. 12%.

E. none of the above