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An investment has an inirial cost of $462.000 and will generate th net income amounts deprecited straight-Iine to zero over the four-year life of the

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An investment has an inirial cost of $462.000 and will generate th net income amounts deprecited straight-Iine to zero over the four-year life of the project Should thia project be ac rate of return if the required rato is 1475 percent? Why or why not? This itvestment will be occepted based on the overage accounting Ycar Nt Incoms $2 000 7,500 O Yes, beceuse the AAR is equal to 14 75 percent O Yes. because the AAR is grester than 1475 percent O Yes. because the AAR s less than 14 75 percent O No becouse the AAR is greater than 14 75 percent O No because the AAR is less than 14.75 percent

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