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Figure 14-4. Sony Lavery is considering investing $45,000 in a project with the following cash revenues and expenses: Cash Expenses & Year Revenues Depreciation Year
Figure 14-4. Sony Lavery is considering investing $45,000 in a project with the following cash revenues and expenses: Cash Expenses & Year Revenues Depreciation Year 1 $18,000 $8,000 Year 2 $22,000 $10,000 Year 3 $22,000 $9,000 Year 4 $24,000 $9,000 Year 5 $26,000 $9,000 Year 6 $28,000 $12,000 Year 7 $28,000 $11,000 Year 8 $28,000 $12,000 Refer to Figure 14-4. What is the accounting rate of return for the project? a. 35% b. 41% c. 26% d. 32% e. 20%
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