#3

The Crystal Company uses straight-line depreciation and is considering a capital expenditure for which the following relevant cash flow data have been estimated: Estimated useful life: 3 years Initial investment $500,000 Savings year 1: $220,000 Savings year 2 $170.000 Savings year 3: $110,000 Residual value after 3 yrs $20,000 The accounting rate of return is closest to O A 133% OB. 15.00% OC. 0.28% OD 34.00%