The City Lodge Hotel Is Appraising a January 1st 20X0

The City Lodge Hotel is appraising a January 1st 20X0 investment of $20,000 in maintenance equipment that will increase accounting profits by $4,000 in 20X0, $6,000 in 20X1 and $8,000 in 20X2. At the end of 20X2, it is estimated the maintenance equipment will be sold for $4,000. What is the projected accounting rate of return for the investment?

A) 30%.
B) 40%.
C) 50%.
D) 60%.
E) None of the above.