Your firm requires an average accounting return (AAR) of at least 15 percent on all fixed asset purchases. Currently, you are considering some new equipment costing $96,000. This equipment will have a 3-year life over which time it will be depreciated on a straight line basis to a zero book value. The annual net income from this project is estimated at $5,500, $12,400, and $17,600 for the 3 years. Should you accept this project based on the accounting rate of return? Why or why not?

	a.	no; because the AAR is less than 15 percent
	b.	no; because the AAR is equal to 15 percent
	c.	yes; because the AAR is equal to 15 percent
	d.	yes; because the AAR is greater than 15 percent
	e.	yes; because the AAR is less than 15 percent