Seattle, Inc., is contemplating a project that costs $180,000. Expectations are that annual cash revenues will be $70,000 and annual expenses (including depreciation) will total $30,000. The project has a six-year useful life and a residual value of $30,000. Assume Seattle Inc. uses straight line method of depreciation.The accounting rate of return for the project is

Answer

	a.	38.1 percent.
	b.	22.2 percent.
	c.	66.7 percent.
	d.	53.3 percent.