Seattle, Inc., is contemplating a project that costs $180,000. Expectations are that annual cash revenues will be $70,000 and annual expenses (including depreciation) will total $30,000. The project has a six-year useful life and a residual value of $30,000. Assume Seattle Inc. uses straight-line method of depreciation. The accounting rate of return for the project is

• A. 22.2%
• B. 53.3 %
• C. 38.1%
• D. 66.7%