Prescott Corporation is considering an investment in new equipment costing $906,000. The equipment will be depreciated on a straight - line basis over a ten - year life and is expected to have a residual value of $106,000. The equipment is expected to generate net cash inflows of $160,000 for each of the first five years and $120,000 for each of the last five years. What is the accounting rate of return associated with the equipment investment? (Round your answer to two decimal places.) O A. 12.03% O B. 12.44% O C. 11.86% O D. 9.83%