Question: Mountain Frost is considering a new project with an initial cost of $ 2 0 0 , 0 0 0 . The equipment will be

Mountain Frost is considering a new project with an initial cost of $200,000. The equipment will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The projected net income for each year is $19,900, $20,800, $24,600, and $16,800, respectively. What is the average accounting return?

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