Omaha Plating Corporation is considering purchasing a machine for $2,800,000. The machine is expected to generate a constant after-tax income of $110,000 per year for 12 years. The firm will use straight-line (SL) depreciation for the new machine over 6 years with no residual value.

What is the estimated accounting (book) rate of return (rounded to two decimal places) on the initial investment?

A. 7.93%

B. 7.86%

C. 11.86%

D. 3.93%

E. 4.00%