newman automobile manufacturing is considering two alternative investment proposals with the following data:

	proposal Y
Investment	500,000
Useful life	5 years
Est annual net cash inflows for 5 years	95,000
Residual Value	20,000
Depreciation method	straight line
Required Rate of Return	10%

calculate the accounting rate of return for proposal y:

a) 8.95%

b) 10.21%

c) 7.50%

d) 6.57%