The project of G-Depress has the following information about the project: Assume straight-line depreciation to zero. Initial investment= $20; life= 5 years; pretax sales= $20 per year; Total operating costs= 5; tax rate= 34%; No Salvage Value. Required NWC is $15. What is the NPV of this project, if discount rate is 11%?

$6.5

$8.2

$9.7

$13.7

$15.5

8. Given the numbers in the previous example, calculate the average accounting return. 29.04% NI= 7.26 AVR assets= 25 AAR= 0.2904