Management is considering a $100,000 investment in a project with a 5-year life and no residual value. If the total income from the project is expected to be $60,000 and recognition is given to the effect of straight-line depreciation on the investment, the av¬ erage rate of return is:

A. 12% C. 60%

B. 24% ■ D. 75%

AppendixLO1