Question: You are looking at a three-year project with a projected net income of Rs.1, 000 in Year 1, Rs.2, 000 in Year 2, Rs.4, 000

You are looking at a three-year project with a projected net income of Rs.1, 000 in Year 1, Rs.2, 000 in Year 2, Rs.4, 000 in year 3. The cost is Rs.9, 000, which will be depreciated straight-line to zero over the three-year life of the project. What is the average accounting return, or ARR?

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