A company invests in a new asset. Over $5$ years it generates a total profit after deprecation of $3$ million. Corporation tax of $25\%$ is payable on profits. The asset cost $6$ million to purchase and it has a value of $2$ million at the end of year $5.$

What is the accounting rate of return?

Question $2$Select one:

a$.$

$15\%$

b$.$

$11\mathrm{.}25\%$

c$.$

$50\%$

d$.$

$75\%$