Food Harvesting Corporation is considering purchasing a machine for $$2,800,000.$ The machine is expected to generate a constant after$-$tax income of $$110,000$ per year for $12$ years. The firm will use straight$-$line $($SL$)$ depreciation for the new machine over $6$ years with no residual value.

What is the estimated accounting $($book$)$ rate of return $($rounded to two decimal places$)$ on the initial investment?

Multiple Choice

$3\mathrm{.}93\%.$

$4\mathrm{.}00\%.$

$7\mathrm{.}86\%.$

$7\mathrm{.}93\%.$

$11\mathrm{.}86\%.$