KB. Seattle, Inc., is contemplating a project that costs $180,000. Expectations are that annual cash flows will be $70,000 and annual expenses (including depreciation) will total $30,000. The project has a six-year useful life and a residual value of $30,000 and $22,860 in net income. The accounting rate of return for the project is

a. 38.1 percent

b. 53.3 percent

c. Some other answer

d. 66.7 percent

e. 22.2 percent