ABC Corp. invests $500,000 this year in a three-year project. The investment will have the salvage value of $140,000. The performance of the project over the three-year span was as follows:

At Year 1, the project had $250,000 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 21%.

At Year 2, the project had $280,000 in revenues, $40,000 in costs of goods sold, $30,000 in other operating expenses, and $20,000 in interest payments. The tax rate was 21%.

At Year 3, the project had $270,000 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 21%.

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.

Group of answer choices

17.25%

18.13%

16.11%

14.32%

Same facts as above: what is the average accounting return of this project if the salvage value is $0 (that is, rather than $140,000)?

Group of answer choices

4.53%

3.58%

6.12%

The average accounting return would remain unchanged.