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D. XYZ Corp wants to start a project with an initial cost of $2.30 million. This project is expected to generate net income amounts shown

D. XYZ Corp wants to start a project with an initial cost of $2.30 million. This project is expected to generate net income amounts shown below. If the required rate of return is 16%, should this project be accepted based on the average accounting rate of return? Give EXPLANATION of your decision.

Year : 1 2 3 4 5

Net income : $168,300 $181,200 $128,700 $252,400 $230,500

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