A new project has an initial cost of $199,000. The equipment will be depreciated on a straight-line basis to a book value of $83,000 at the end of the four-year life of the project. The projected net income each year is $16,200, $18,550, $24,300, and $16,100, respectively. What is the average accounting return?

Multiple Choice

• 14.28%

• 18.88%

• 7.55%

• 16.58%

• 13.32%

• Rossdale Flowers has a new greenhouse project with an initial cost of $321,000 that is expected to generate cash flows of $44,700 for 9 years and a cash flow of $60,100 in Year 10. If the required return is 7.7 percent, what is the project's NPV?

  Multiple Choice

• $87,790.25

• $9,623.62

• $110,718.25

• $11,665.15

• $16,958.00