A project has an initial cost of $40,000 and a four-year life.The company uses straight-line depreciation to a book value of zero over the life of the project.The projected net income from the project is $1,200,$2,200,$3,500,and $2,700 a year for the next four years,respectively.What is the average accounting return?
A)3.55%
B)4.13%
C)4.28%
D)7.11%
E)12.00%

Question

Quizplus · Accepted Answer

The Answer of A project has an initial cost of $40,000 and a four-year life.The company uses straight-line depreciation to a book value of zero over the life of the project.The projected net income from the project is $1,200,$2,200,$3,500,and $2,700 a year for the next four years,respectively.What is the average accounting return?
A)3.55%
B)4.13%
C)4.28%
D)7.11%
E)12.00%

A Project Has an Initial Cost of $40,000 and a Four-Year