Brandon Company Is Contemplating the Purchase of a New Piece

Brandon Company is contemplating the purchase of a new piece of equipment for $45,000.Brandon is in the 30% income tax bracket.Predicted annual after-tax cash inflows from this investment are $18,000,$15,000,$9,000,$6,000 and $3,000 for years 1 through 5 respectively.The firm uses straight-line depreciation with no residual value at the end of five years.The hurdle rate for accepting new capital investment projects is 4%,after-tax.The estimated book (accounting) rate of return on this project (rounded to two decimal points) ,based on the initial investment is:

A) 2.67%.
B) 3.33%.
C) 6.67%.
D) 10.00%.
E) 12.00%.