Would you divide the average net income by the 1.35 million given, or by 900,000 (2.7 million/3years)?

Question 20 2 pts 19) An investment has an initial cost of $2.7 million and net income of $189,400, $178,600, and $172,500 for Years 1 to 3. The average book value is $1.35 million. Should this project be accepted based on the average accounting rate of return if the required rate is 12.5 percent? Why or why not? No, because the AAR is greater than 12.5 percent No, because the AAR is less than 12.5 percent Yes, because the AAR is less than 12.5 percent Yes, because the AAR is greater than 12.5 percent Yes, because the AAR is 12.5 percent