A company is evaluating three possible investments. Each uses the straightminus-line method of depreciation. Following informatin is provided by the comany:

Project A Project B Project C

Investment $228 comma 000$228,000 $50 comma 000$50 $228 comma000$228,000

Residual value 0 20 comma 00020,000 28 comma 00028,000

Net cash flows:

year 1 52 comma 00052,000 32 comma 00032,000 80 comma 00080,000

year 2 52 comma 00052,000 23 comma 00023,000 50 comma 00050,000

year 3 52 comma 00052,000 19 comma 00019,000 60 comma 00060, 000

year 4 52 comma 00052,000 16 comma 00016,000 20 comma 00020,000

year 5 52 comma 00052,000 0 0

what is the accouting rate of return for Projct B? (round your answer to two decimal places.)

A. 42.8642.86%

B. 26.4426.44%

C. 42.6342.63%

D. 40.8440.84%