AY7 Lid is considering investing in a new dam at a cost of 500,000. I1 Is

expected that the dam will be used for 3 years. and will have a residual

value of $100.000. The dam is forecasted to produce the following future

profits (after depreciation) over the course of its useful life:

Year 1

1 50.000

Year 2

250,000

Year 3

350.000

Based on the information provided, what is the accounting rate of return?

A: 125.00%

B: 50.00%

C: 67.00%

D: 83.00%