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Carla Vista Corp. management is expecting a project to generate after-tax income of $78,640 in each of the next three years. The average book value

Carla Vista Corp. management is expecting a project to generate after-tax income of $78,640 in each of the next three years. The average book value of the projects equipment over that period will be $261,990. If the firms investment decision on any project is based on an ARR of 37.5 percent. (Round answer to 1 decimal place, e.g. 5.2%.) What is the projects accounting rate of return?

Accounting rate of return is %

Should the firm accept this project?

The firm should acceptreject the project.

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