Landrum Corporation is considering investing in specialized equipment costing $250,000. The equipment has a useful life of 5 years and a residual value of $20,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are:

Year 1	$60,000
Year 2	$90,000
Year 3	$110,000
Year 4	$40,000
Year 5	$25,000
Total cash inflows	$325,000

Landrum Corporation's required rate of return on investments is 14%.

What is the accounting rate of return on the investment?

A.

44.40%

B.

5.60%

C.

7.60%

D.

18.40%