A company is considering purchasing a new machine for $40,000. It is estimated that the machine will have a useful life of 10 years and a zero salvage value. The machine will generate an after-tax net income of $4,000 per year. Annual depreciation expense will be $4,000. What is the machine's accounting rate of return (ARR)? Select one: a. 5%. b. 10%. c. 20%. d. 25%. e. 50%