Question: The Green Fiddle is considering a project that will produce sales of $87,000 a year for the next four years. The profit margin is 6

The Green Fiddle is considering a project that will produce sales of $87,000 a year for the next four years. The profit margin is 6 percent, the project cost is $96,000, and depreciation is straight-line to a zero book value over the life of the project. The required accounting return is 11 percent. This project should be _____ because the AAR is _____ percent.
A). Rejected; 10.03
B). Accepted; 10.88
C). Rejected; 11.60
D). Accepted; 10.03
E). Rejected; 10.88

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