Plant Company is contemplating the purchase of a new piece of equipment for $53,000. Plant is in the 20% income tax bracket Predicted annual after-tax cash inflows from this investment are $27,000, $10,000 $14,000, $8,000 and $3,000 for years 1 through 5, respectively. The firm uses straight-line depreciation with no residual value at the end of five years. The hurdle rate for accepting new capital investment projects is 4%, after tax. The estimated accounting rate of return (ARR) on this project (rounded to two decimal points), based on the initial investment is: Multiple Choice O 3.40%. O 4.06%. 7.40%. 10.73% 12.73%