A project has an initial cost of $32,000 and a 3-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 $1,200, $2,300, and $1,800 a year for the next 3 years, respectively. What is the average accounting return?

Please show work, thank you :)

Options:

a) 8.72%

b) 11.04%

c) 11.26%

d) 14.69%