Disturbia Company acquired a capital investment project. The following data are made available:

Year

After-tax Cash Flows

0

(P 25,000)

1

P 8,000

2

P 8,000

3

P 8,000

4

?

Year

Simple factor @ 10%

Annuity factor @ 10%

1

0.909

0.909

2

0.826

1.736

3

0.751

2.487

4

0.683

3.170

Assuming straight-line depreciation is used and the annual after-tax cash flows are uniform throughout the life of the project, what is the project's accounting rate of return on original investment?

Group of answer choices

57%

7%

32%

96%