The Big Fist Bar Ltd expects to earn a profit before depreciation and taxes of $70,000 per year for ten years as a result of a $200,000 investment in expanded facilities. The annual depreciation expense allowed by the tax department is $20,000 per year, and taxes are 30% of profits. The annual accounting return on investment is: Select one:

a. 17.5%. b. 24.5%. c. 27.5%. d. 34.5%. e. 35.0%