The Nifty Fifty is considering opening a new store at a start-up cost of $628,000.The initial investment will be depreciated straight-line to zero over the 15-year life of the project.What is the average accounting rate of return given the following net income projections?
A)16.42 percent
B)16.68 percent
C)17.01 percent
D)17.18 percent
E)16.35 percent

Question

The Nifty Fifty is considering opening a new store at a start-up cost of $628,000.The initial investment will be depreciated straight-line to zero over the 15-year life of the project.What is the average accounting rate of return given the following net income projections? 
A)16.42 percent 
B)16.68 percent 
C)17.01 percent 
D)17.18 percent 
E)16.35 percent

Quizplus · Accepted Answer

The Answer of The Nifty Fifty is considering opening a new store at a start-up cost of $628,000.The initial investment will be depreciated straight-line to zero over the 15-year life of the project.What is the average accounting rate of return given the following net income projections? 
A)16.42 percent 
B)16.68 percent 
C)17.01 percent 
D)17.18 percent 
E)16.35 percent

The Nifty Fifty Is Considering Opening a New Store at a Start-Up