ACCOUNTING RATE OF RETURN Eyring Company invested $10,000,000 in a new product line. The life cycle of the product is projected to be seven years with the following net income stream: $200,000

$600,000, $1,000,000, $1,200,000, $1,600,000, $2,200,000, and $1,600,000.

Required:

Calculate the accounting rate of return.

Cornerstone Exercise