The Management of Arnold Corporation is considering the purchase of a new machine costing $400,000. The residual value of the machine is estimated to be $0. The companys desired rate of return is 8%. The estimated income and net cash flows associated with the investment are as follows:

Year	Operating Income	Net Cash Flow
1	$100,000	$180,000
2	40,000	120,000
3	20,000	100,000
4	10,000	90,000
5	10,000	90,000

The accounting average rate of return for this investment is:

	A.	16%
	B.	18%
	C.	10%
	D.	none of these
	E.	58%