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LexCorp is considering a project that will produce sales of $120,000 a year for the next four years. The profit margin is 8 percent, the
LexCorp is considering a project that will produce sales of $120,000 a year for the next four years. The profit margin is 8 percent, the project cost is $195,000, and depreciation is straight-line to a zero book value over the life of the project. The required accounting return is 12 percent. This project should be ________ because the AAR is ________ percent. Select one: A. Rejected; 10.24 B. Rejected; 9.85 C. Rejected; 10.65 D. Accepted; 14.82 E. Accepted; 9.85
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