Judy Blue, CEO of the clothing store All Blue, is planning to open a new store in Manhattan. She plans to purchase a small storefront for $5,250,000 which has a remaining useful life of 15 years. She plans to hire 2 part-time sales clerks and will pay each of them $34,000 per year in wages and other benefits. Judy expects that revenues will average $86,000 per month and other monthly operating costs will run $13,200. What is the accounting rate of return for the Manhattan store?

Please choose one of the following answers:

a. 10%

b. 1.1%

c. 15.3%

d. 8.7%