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1. 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
1.
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 $1,300, $1,500, $1,700, and $4,500 a year for the next four years, respectively. What is the average accounting return? |
56.25 percent
5.63 percent
11.25 percent
8.89 percent
22.50 percent
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