Juno Manufacturing Ltd. is considering replacing its existing equipment with an automated machine for $133,950. Juno depreciates its capital assets using the straight-line depreciation method. Juno estimates that the new machine will reduce production costs by $28,500 per year and that it has a useful life of 6 years. What is the accrual accounting rate of return?

a. 3.55%

b. 4.61%

c. 9.50%

d. 21.30%