Andreescu's project which costs $642,000 has projected average net income of $42,000 a year over its 4-year life. It will be depreciated using straight-line depreciation to a book value of zero over the life of the project. The firm wants to earn a minimal average accounting return of 8.5 %. The firm should _____ the project based on the AAR of _____

Group of answer choices

Accept; 13.08%

Accept; 6.5%

Reject; 6.5%

Reject; 13.08%

Accept; 7.0%