Question
A project has an initial cost of $33,945 and a three-year life. The company uses straight-line depreciation to a book value of zero over the
A project has an initial cost of $33,945 and a three-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 $1,700, $2,000, and $2,470 a year for the next three years, respectively. What is the average accounting return?
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
