ABC Corp. invests $550.000 this year in a three-year project. The investment will have the salvage value of $100.000. The performance of the project over the three-year span was as follows: At Year 1, the project had $255.000 in revenues, $45,000 in costs of goods sold, $34.000 in other operating expenses, and $20.000 in interest payments. The tax rate was 21%. At Year 2, the project had $265,000 in revenues, $47.000 in costs of goods sold, $32,000 in other operating expenses, and $20,000 in interest payments. The tax rate was 21%. At Year 3, the project had $270,000 in revenues, $48,000 in costs of goods sold, $33,000 in other operating expenses, and $20,000 in interest payments. The tax rate was 21%. What was the firm's average accounting return during the three-year span? Hint: Average Book Value of Assets = (Initial Investment + the asset's salvage (resale) value) /2. ABCD Corp. has a project where the Internal Rate of Return (IRR) is 10.05\%. Which of the following is true? Assume that the project consists of an initial cash outlay (i.e. investments) that is followed by subsequent inflows. The project will have a negative NPV if the interest/discount rate is 9.05%. The project will have a negative NPV if the interest/discount rate is 11.92%. The project will "break even" or have a zero NPV when the discount rate is 9.63%. We need more information than just Internal Rate of Return (IRR) to observe whether the project will be profitable at a given interest/discount rate