The Following Data Concerns a Proposed Equipment Purchase: Cost $144,000

The following data concerns a proposed equipment purchase: Cost $144,000
Salvage value $ 4,000
Estimated useful life 4 years
Annual net cash flows $ 46,100
Depreciation method Straight-line
The annual average investment amount used to calculate the accounting rate of return is:

A) $72,000
B) $70,000
C) $37,000
D) $74,000
E) $48,950