Sayer Tool Co. is considering investing in specialized equipment costing $640,000. The equipment has a useful life of five years and a residual value of $61,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below: Year 1 $201,000 2 154,000 3 169,000 4 96,000 5 70,000 $690,000 What is the accounting rate of return on the investment? (Round your answer to two decimal places.) A. 6.33% B. 3.17% C. 6.94% D. 7.67%