Tiberius Manufacturing Is Considering Two Alternative Investment Proposals with the Following

Tiberius Manufacturing is considering two alternative investment proposals with the following data: $\begin{array}{|l|r|r|} \hline& \text { Proposal } X & \text { Proposal } Y \\\hline \text { Investment } & \$ 10,500,000 & \$ 500,000 \\\hline \text { Useful life } & 5 \text { years } & 5 \text { years } \\\hline \text { Estimated anuual net cash inflows for 5 years } & \$ 2,100,000 & \$ 105,000 \\\hline \text { Residual value } & \$ 52,000 & \$ 32,000 \\\hline \text { Depreciation method } & \text { Straight-line } & \text { Straight-line } \\\hline \text { Required rate of return } & 13 \% & 12 \% \\\hline\end{array}$ Calculate the accounting rate of return for Proposal Y. (Round any intermediate calculations and your final answer to two decimal places.)

A) 13.87%
B) 12.63%
C) 4.29%
D) 9.52%