You are considering an equipment purchase costing $167,000. This equipment will be depreciated straight-line to zero over its three-year life. What is the average accounting return if this equipment produces the following net income? Year Net Income 1 $15,600 2 14,200 3 13,500 18.38% 18.29% 16.67% 17.29% 15.67%

You are considering an equipment purchase costing $167,000. This equipment will be depreciated straight-line to zero over its three-year life. What is the average accounting return if this equipment produces the following net income? Year Net Income 1$15,600 214,200 313,500 18.38% 18.29% 16.67% 17.29% 15.67%