Capitol Ltd. is expecting to generate after-tax income of $63,435 over each of the next three years. The average book value of its equipment over that period will be $212,500. If the companys acceptance decision on any project is based on an ARR of 37.5 percent, which of the following statements is correct?

Question 5 options:

a)	the project should be accepted

b)	the project should not be accepted

c)	not enough information is provided

d)	All of the above