Accrual accounting rate of return based in the initial investment is

tuestion 5 of yet Bang Co. is negotiating for the purchase of equipment that would cost $100,000, with nswered the expectation that P20,000 per year could be saved in after-tax cash costs if the larked out of equipment were acquired. The equipment's estimated useful life is ten years, with no residual value, and it would be depreciated by the straight-line method. Bang's Flag predetermined minimum desired rate of return is 12%. The present value of an annuity gestion of 1 at 12% for ten periods is 5.65. The present value of 1 due in ten periods at 12% is 322. Accrual accounting rate of return based on the initial investment is Select one: a. 10% b. 20% C. 10% d. 30%