Assume we require an average accounting return of $20\%.$ Net income is $$20,000$ and $$10,000$ for two years. Average book value is $$80,000.$ Based on average accounting return do we accept the project?

Yes, because AAR is $533\%$

No$,$ because AAR is $2\mathrm{.}67\%$

No$,$ because AAR is $18\mathrm{.}75\%$

Yes, because AAR is $37\mathrm{.}5\%$