The manager of a business is considering investing in specialized equipment costing $240,000. The equipment has a useful life of 5 years and a residual value of $40,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are: Year 1 Year 2 Year 3 Year 4 Year 5 $60,000 $90,000 $110,000 $40,000 $25,000 $325,000 Total cash inflows What is the accounting rate of return on the investment? a. 8.75% O b. 12.5% O c. 6.67% O d. 9.55% Clear my choice