Nylan Tiles is considering an investment in new equipment costing $866, 000.The equipment will be depreciated on a straight line basis over a five - year life and is expected to have a residual value of $58, 000. The equipment is expected to generate net cash inflows of $1, 004, 000 in total during the five - year life. What is the accounting rate of return associated with the equipment investment? (Round your answer to two decimal places.)

A. 11.54 %

B. 45.01 %

C. 8.48 %

D. 9.31 %