Redwood Corporation is considering two alternative investment proposals with the following data:

	Proposal X	Proposal Y
Investment	$880,000	$454,000
Useful life	9 years	9 years
Estimated annual net cash inflows for 9 years	$150,000	$63,000
Residual value	$47,000	$
Depreciation method	Straightline	Straightline
Required rate of return	15%	9%

What is the accounting rate of return for Proposal X? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.)

A.

6.53%

B.

17.05%

C.

5.93%

D.

2.77%