X Company currently buys 6,500 units of a component part each year from a supplier for $8.90 each but is considering making the part instead. X Company estimates that it will cost a total of $29,235 to make the 6,500 units. Equipment will have to be purchased for $150,000 and will last for six years, at which time it will have zero disposal value. What is the approximate rate of return if X Company makes the part instead of buying it?

A: 0.03

B: 0.04

C: 0.05

D: 0.06

E: 0.07

F: 0.08