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%