Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $148,400. The equipment will have an initial cost of $530,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $12,000, what is the accounting rate of return?

a. 150.37%

b. 17.28%

c. 28.00%

d. 45.11%