A project has an initial cost of $72,000 and a four-year life. The company uses straight-line depreciation
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A project has an initial cost of $72,000 and a four-year life. The company uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $2,900, $2,300, $2,700, and $4,500 a year for the next four years, respectively. What is the average accounting return?
35.97 percent
11.61 percent
4.31 percent
8.61 percent
17.22 percent
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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