capital investment decisions

A company is evaluating three possible investments, Each uses the straight - line method of depreciation. Following information is provided by the company: Project A Project B Project C Investment $212,000 $52,000 $212,000 Residual value 24,000 38,000 Net cash inflows: Year 1 54,000 32,000 80.000 Year 2 54,000 23,000 50 000 Year 3 54,000 19,000 60,000 Year 4 54,000 16,000 20,000 Year 5 54,000 What is the accounting rate of return for Project B? (Round your answer to two decimal places.) O A. 39.01% O B. 40.79% en O C. 27.32% O D. 44.05%