A project produces annual net income of $9,500, $12,500, and $15,500 over the three years of its life, respectively. The initial cost of the project is $260,400. This cost is depreciated straight-line to
A zero book value over three years. What is the average accounting rate of return if the required
Discount rate is 7 percent?
A) 4.80 percent
B) 7.32 percent
C) 8.97 percent
D) 9.60 percent
E) 10.27 percent

Question

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The Answer of A project produces annual net income of $9,500, $12,500, and $15,500 over the three years of its life, respectively. The initial cost of the project is $260,400. This cost is depreciated straight-line to
A zero book value over three years. What is the average accounting rate of return if the required
Discount rate is 7 percent?
A) 4.80 percent
B) 7.32 percent
C) 8.97 percent
D) 9.60 percent
E) 10.27 percent

A Project Produces Annual Net Income of $9,500, $12,500, and $15,500