Blarney Ltd expects to earn a net profit before tax of $130,000 per year for five years, as a result of a $300,000 investment in new equipment. The annual depreciation expense allowed by the tax department is $26,000 per year, and taxes are 30% of profits. The annual accounting return on investment is:

Select one:

a.

21.7%.

b.

30.3%.

c.

24.3%.

d.

39.0%.

e.

32.9%.