Figure 14-7

Figure 14-7.Osler Company is considering an investment with the following data:
Depreciation will be taken on a straight-line basis over the expected life of the investment.
-Refer to Figure 14-7. What is the accounting rate of return for the investment?

A) 10%
B) 12.5%
C) 25%
D) 2.5%
E) 20%