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Cary Swenson
Cary Swenson Is Considering Investing $30,000 in a Project

Question 69

Multiple Choice

Cary Swenson
Cary Swenson is considering investing $30,000 in a project with the following cash revenues and expenses:  Cash Expenses & Revenues  Depreciation  Year 1 $10,000$12,000 Year 2 $12,000$11,000 Year 3 $15,000$12,000 Year 4 $20,000$12,000 Year 5 $22,000$12,000 Year 6 $25,000$15,000 Year 7 $25,000$15,000 Year 8 $25,000$15,000\begin{array}{lll}&\text { Cash Expenses \&}\\&\text { Revenues }&\text { Depreciation }\\\text { Year 1 } & \$ 10,000 & \$ 12,000 \\\text { Year 2 } & \$ 12,000 & \$ 11,000 \\\text { Year 3 } & \$ 15,000 & \$ 12,000 \\\text { Year 4 } & \$ 20,000 & \$ 12,000 \\\text { Year 5 } & \$ 22,000 & \$ 12,000 \\\text { Year 6 } & \$ 25,000 & \$ 15,000 \\\text { Year 7 } & \$ 25,000 & \$ 15,000 \\\text { Year 8 } & \$ 25,000 & \$ 15,000\end{array}
-Refer to Cary Swenson. What is the average income for the project?


A) $6,250
B) $13,000
C) $19,250
D) $30,000

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