Your firm is evaluating the project below. Given the initial investment of the project is $$50,000,$

calculate the accounting rate of return for the project.

Year $($t$)$ Profit After Tax

$1$ $$15000$

$2$ $$20000$

$3$ $$25000$

Given the minimum acceptable return determined by the management is $15\%,$ should if the

firm should accept or reject the project. Justify your answer.

$(3$ marks$)$

$---$ END OF PAPER $--$