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A Project Produces Annual Net Income of $14,600, $18,700, and $23,500

question 362

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A project produces annual net income of $14,600, $18,700, and $23,500 over three years, respectively. The initial cost of the project is $310,800. This cost is depreciated straight-line to a zero book value over three years. What is the average accounting rate of return if the required discount rate is 9 %?


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United States

A country in North America consisting of 50 states and a federal district, known for its large economy and diverse population.

Fairly High

A relative measure indicating a level or amount that is somewhat above average or normal.

Hospice Care

A type of care and philosophy that focuses on the palliation of a chronically ill or terminally ill patient's pain and symptoms, and attending to their emotional and spiritual needs.

Terminally Ill

A medical condition or status indicating that a patient has an illness or diseases that is progressive and incurable, leading eventually to death.

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