question 8

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A company is evaluating three possible investments. Each uses the straight line method of depreciation. The following information is provided by the company: Project A Project B Project C Investment $226,000 $50,000 $226,000 Residual value 0 20,000 36,000 Net cash inflows: Year 1 66,000 28,000 94,000 Year 2 66,000 19,000 64,000 Year 3 66,000 15,000 74,000 Year 4 66,000 12,000 34,000 Year 5 66,000 0 0 What is the accounting rate of return for Proiect C? (Round vour answer to two decimal places.) O A. 13.27% OB. 14.50% O C. 15.04% D. 24.00% Was