Question 2 Colin's Haberdashery Products is considering a project that would have an initial cost of $285,000 and a 4-year life. The projects assets will be depreciated using straight-line depreciation to a zero book value over the life of the project. Projected cash flow from the project is forecast at $83,650, $92,850, $94,350 and $93,250 respectively for the next 4 years. Projected annual net income from the project is forecast at $12,400, $21,600, $23,100 and $22,000 for the next 4 years, respectively. What is the average accounting return? 6.94 percent 13.88 percent 15.66 percent 27.75 percent 31.31 percent