Edith Farms is considering the purchase of a new combine that costs $450,000. The combine has a 10-year useful life and a salvage value of $50,000. The combine will generate $75,000 in annual cash flows. If Edith Farms purchases the new combine, it can sell its current combine for $75,000. Edith Farms has an 8% required rate of return and uses the straight-line depreciation method. The accounting rate of return on the combine is closest to:

A) 6.67%

B) 7.78%

C) 8.00%

D) 9.33%