An investment has an initial cost of $1.5 million. This investment will be depreciated by $375,000 a year over the 4-year life of the project. Should this project be accepted based on the average accounting rate of return if the required rate is 15.5 percent? Why or why not?

Year 1 2 3 4

Net income $98,000 $104,600 $128,700 $112,400

please explain