A project produces annual net income of $10,500, $15,700, and $16,200 over its 3-year life and requires an initial investment in fixed assets of $210,000. The book value of these assets will be $140,007, $46,662, and $15,561 at the end of Years 1 to 3, respectively. What is the average accounting rate of return if the required discount rate is 14.5 percent?

Select one:

a. 13.46%

b. 13.71%

c. 14.32%

d. 13.98%

e. 14.62%