What is the accounting rate of return on the investment?

Mahtomedi Corporation is considering investing in specialised equipment costing $240,000. The equipment has a useful life of 5 years and a residual value of $20,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are: Year 1 $ 60,000, Year 2 $  90,000, Year 3 $110,000, Year 4 $ 40,000, Year 5 $ 25,000, Total cash inflows $325,000. Mahtomedi Corporation’s required rate of return on investments is 14%.
A. 6.67%
B. 8.75%
C. 18.33%
D. 45.42%