ABC Corp. invests $500,000 this year in a three-year project. The investment will have the salvage value of $170,000. The performance of the project over the three-year span was as follows:

At Year 1, the project had $260,000 in revenues, $30,000 in costs of goods sold, $32,000 in other operating expenses, and $20,000 in interest payments. The tax rate was 19%.

At Year 2, the project had $280,000 in revenues, $41,000 in costs of goods sold, $31,000 in other operating expenses, and $20,000 in interest payments. The tax rate was 19%.

At Year 3, the project had $280,000 in revenues, $41,000 in costs of goods sold, $33,000 in other operating expenses, and $20,000 in interest payments. The tax rate was 19%.

What is this project's average accounting return during the three-year span?

HINT: Be sure to set up your depreciation expenses based on the duration of the project.

17.24%

15.25%

17.89%

16.24%

Same facts as above: what is the average accounting return of this project if the salvage value is $105,000 (that is, rather than $170,000)?

Group of answer choices

14.01%

12.10%

14.53%

15.12%