Bota Banana Corporation is considering the purchase of a new machine costing $30,000. The machine would generate net cash inflows of $12,000 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Bota Banana's cost of capital is 12 percent. Bota Banana uses straight-line depreciation. The investment's accounting rate of return on initial investment is:

Select one:

a. 20%

b. 40%

c. 60%

d. 22%