A project has an initial cost of $150,000 and an estimated salvage value after 13 years of $90,000. Estimated average annual receipts are $27,000. Estimated average annual disbursements are $16,000. Assuming that annual receipts and disbursements will be uniform and compute the prospective rate of return before taxes.
A) 4.6%
B) 5.8%
C) 3.5%
D) 5.1%