The management of Charlton Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability in this situation:

Year	Income fromOperations	Net CashFlow
1	$20,000	$95,000
2	20,000	95,000
3	20,000	95,000
4	20,000	95,000
5	20,000	95,000

The average rate of return for this investment is:

A) 5%

B) 10.5%

C) 25%

D)15%