Overland Corporation has gathered the following data on a proposed investment project:

The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The accrual accounting rate of return on the investment is:

A. 10.00%

B. 16.67%

C. 36.67%

D. 26.67%

$150,000 $40,000 Investment required in equipment Annual cash inflows Salvage value of equipment... Life of the investment........ Required rate of return ............. $0 10 years 10%