Clapton Corporation is considering an investment in new equipment costing $906,000.The equipment will be depreciated on a straightline basis over a tenyear life and is expected to have a residual value of $96,000. The equipment is expected to generate net cash flows of $150,000 for each of the first five years and $126,000 for each of the last five years. What is the accounting rate of return associated with the equipment investment? (Round your answer to two decimal places.)

A.12.16%

B.8.99%

C.12.60%

D.11.38%