Larry's Lanterns is considering a project which will produce sales of $1,000,000 a year for the next five years. The profit margin is estimated at 8%. The project costs $2,900,000 and can be depreciated straight-line to a book value of zero over the life of the project. What is the average accounting return (AAR)? Select one: a. 5.52% b. 13.79% C. 9.38% d. 8.00% e. 2.76% Suppose your company has an equity beta of 1.58 and the current risk-free rate is 2.5%. If the expected market rate of return is 8.1%, what is your cost of equity? Select one: a. 8.85% b. Cannot be determined based on the information provided c. 15.30% d. 7.40% 1135%