Newman Automobiles Manufacturing is considering two alternative investment proposals with the following data: A, B, C, or D

Newman Automobiles Manufacturing is considering two alternative investment proposals with the following data: ProposalX Proposal Y Investment $11,800,000 $450,000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $2,360,000 $98,000 Residual value $57,000 $27,000 Depreciation method Straight-line Straight-line Required rate of return 12% 14% Calculate accounting rate of return for Proposal Y. A. 10.61% OB. 15.75% O C. 5.62% OD. 14.86%