Maribel Musical Instruments is considering a project that will produce sales of $87,000 a year for the next 3 years. The profit margin is estimated at 6 percent. The project has an initial fixed asset investment requirement that will cost $90,000 and will be depreciated straight-line to a book value of zero over the life of the project. The firm has a required accounting return of 9.5 percent. This project should be _____ because the AAR is _____ percent. rejected; 10.03 rejected; 10.24 rejected; 11.60 accepted; 10.24 accepted; 11.60

Maribel Musical Instruments is considering a project that will produce sales of $87,000 a year for the next 3 years. The profit margin is estimated at 6 percent. The project has an initial fixed asset investment requirement that will cost $90,000 and will be depreciated straight-line to a book value of zero over the life of the project. The firm has a required accounting return of 9.5 percent. This project should be _____ because the AAR is _____ percent.

		rejected; 10.03
		rejected; 10.24
		rejected; 11.60
		accepted; 10.24
		accepted; 11.60