Question: Sample Project Data: Year 0: CF = -165,000. Year 1: CF= 63,120 Year 2: CF = 70,800 Year 3: CF 91,080 Average book value

Sample Project Data: Year 0: CF = -165,000. Year 1: CF= 63,120 Year 2: CF = 70,800 Year 3: CF 91,080 Average Calculate average net income. Do we accept or reject the project?

Sample Project Data: Year 0: CF = -165,000. Year 1: CF= 63,120 Year 2: CF = 70,800 Year 3: CF 91,080 Average book value = $72,000. Required average accounting return = 25%. . NI = 13,620. NI = 3,300. NI = 29,100. Calculate average net income. Do we accept or reject the project?

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