McLaughin Co. places electronic games and other amusement devices in supermarkets and other similar retail stores. McLaughin is investigating the purchase of a new electronic game called Mythical Marauders. The manufacturer will sell ten Mythical Marauders arcade units to McLaughin for a total of $160,000. Each game unit would have a five year useful life (amount of time the game could be placed in stores before being removed as a result of disrepair). The ten units collectively are projected to provide net operating income of $30,000 in each of the five years they would be in use. The game would replace other games that are unpopular and are generating little revenue, as the retail spaces do not have enough room to fit another arcade unit in addition to those already being displayed on behalf of McLaghin Co. The old games that are replaced could be sold for a total of $40,000. Given these facts the simple rate of return on the Mythical Marauders game units would be

a. 18.75%

b. 68.75%

c. 25.00%

d. 75.00%