A new project has an initial cost of $275,000. The equipment will be depreciated on a straight-line basis to a zero book value over the five-year life of the project. The projected net income each year is $13,500, $18,500, $20,840, $15,400, and $12,400, respectively. What is the average accounting return?

Options:

A) 12.57%

B) 8.35%

C) 11.73%

D) 10.75%

E) 4.96%

Thank you in advance!