A Project Produces Annual Net Income of $11,500, $13,700, and $16,900

question 126

Multiple Choice

A project produces annual net income of $11,500, $13,700, and $16,900 over the three years of its life, respectively. The initial cost of the project is $257,000. 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 6.75 %?

• A) 5.33 %
• B) 5.46 %
• C) 6.58 %
• D) 10.92 %
• E) 13.90 %

---

Definitions:

Paranoid Personality Disorder

A mental health condition characterized by a pervasive distrust and suspicion of others' motives, leading to significant social and interpersonal difficulties.

Avoidant Personality Disorder

A mental disorder characterized by a long-standing pattern of significant social inhibition, feelings of inadequacy, and extremely sensitive to what others think about them.

Sensitive To Criticism

A personality trait or condition where an individual exhibits an above-average response to criticism, often experiencing distress, anxiety, or anger as a result.

Era Of Narcissism

A period characterized by a widespread focus on self-admiration, entitlement, and individualism, often criticized for undermining social cohesion.