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 $1,100, $1,300, $1,600, and $1,900 a year for the next four years, respectively. What is the average accounting return?

7.76 percent

3.88 percent

4.52 percent

5.00 percent

15.53 percent