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A new project has an initial cost of $275,000. The equipment will be depreciated on a straight-line basis to a zero book value over the
A new project has an initial cost of $275,000. The equipment will be depreciated on a straight-line basis to a zero book value over the five-year life of the project. The projected net income each year is $13,500, $18,500, $20,840, $15,400, and $12,400, respectively. What is the average accounting return?
Options:
A) 12.57%
B) 8.35%
C) 11.73%
D) 10.75%
E) 4.96%
Thank you in advance!
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