Question: Natt Ltd is considering undertaking a project that would yield annual profits (after depreciation) of 68,000 for 5 years. The initial outlay of the project

Natt Ltd is considering undertaking a project that would yield annual profits (after depreciation) of 68,000 for 5 years. The initial outlay of the project would be 800,000 and the project's assets would have a residual value of 50,000 at the end of the project. What would be the accounting rate of return for this project?

a)16%

b)8.5%

c)8.0%

d)9.1%

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