McAfee Automobiles Manufacturing is considering two alternative investment proposals with the following data:

	Proposal X	Proposal Y
Investment	$11,600,000	$490,000
Useful life	5 years	5 years
Estimated annual net cash inflows for 5 years	$2,320,000	$98,000
Residual value	$54,000	$23,000
Depreciation method	Straightline	Straightline
Required rate of return	12%	12%

Calculate the accounting rate of return for Proposal Y. (Round any intermediate calculations and your final answer to two decimal places.)

A.11.2%

B.1.79%

C.88%

D.12.5%