RL Enterprises wants to buy a machine that costs $420,000, has a 20-year life, and has no salvage value. Annual inflows are $210,000 and annual outflows are $160,000. If RL uses the straight-line method to compute depreciation, what is the annual rate of return on this purchase?

• A :

  13.81%

• B :

  9.34%

• C :

  18.13%

• D :

  6.90%