A project has an initial cost of $38,000 and a four-year life. The company uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $1,200, $3,500, $3,800, and $4,500 a year for the next four years, respectively. What is the average accounting return?

8.55 percent

17.11 percent

69.74 percent

5.85 percent

34.21 percent