Oboe Publishing is considering the purchase of a used printing press costing $40,000. The printing press would generate a net cash inflow of $10,000 a year for 10 years. At the end of 10 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation. The projects accounting rate of return on the initial investment is:

Select one:

a. 5%

b. 25%

c. 15%

d. 35%