Mosaic Tile Company is considering an investment in new equipment costing

$858,000. The equipment will be depreciated on a straightline basis over a

fiveyear life and is expected to have a residual value of $70,000. The equipment is expected to generate net cash inflows of $1,002,000 in total during the fiveyear life. What is the accounting rate of return associated with the equipment investment? (Round your answer to two decimal places.)

A.

13.96%

B.

43.19%

C.

9.36%

D.

9.22%