Project NNN is a 9-year life project with an 8% annual traditional weighted average cost of capital.

NNNs initial cash outflow (CF₀) is $1,000,000, financed with $600,000 of debt and $400,000 of equity.

Its traditional net cash inflows equal $200,000 per year (CF₁ to CF₁₂ equal $200,000 per year), and its traditional net income after taxes equal $120,000 per year (NIAT₁ to NIAT₁₂ equal $120,000 per year).

Project NNNs Accounting or Average Rate of Return is: