A project that requires an investment of $42,000 is expected to generate $14,000 of net income in Year 1, $18,000 of net income in Year 2, and $21,000 of net income in Year 3. Operating cash flows expected in Year 1 are $16,000, with Year 2 as $12,000, and year 3 as $13,000. What is the accounting rate of return for this investment?

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The Answer of A project that requires an investment of $42,000 is expected to generate $14,000 of net income in Year 1, $18,000 of net income in Year 2, and $21,000 of net income in Year 3. Operating cash flows expected in Year 1 are $16,000, with Year 2 as $12,000, and year 3 as $13,000. What is the accounting rate of return for this investment?

A Project That Requires an Investment of $42,000 Is Expected