USE THE FOLLOWING INFORMATION FOR QUESTIONS 4-8 Happy Company is considering the purchase of a new machine that would cost $120,000. The nachine would have a useful life of 6 years. Happy Company plans on using straight-line lepreciation with an estimated salvage value of $0. Happy Company has a hurdle rate of 8% and s subject to an income tax rate of 60%. The annual cash income is estimated to be $40,000. PV TABLES CAN BE FOUND ON PAGE 13. 4. The Accounting Rate of Return (AROR) is: A. 6.17% B. 6.37% C. 6.67% D. 7.17% E. 7.67%