A Project Has an Initial Cost of £38,000 and a Four-Year

question 90

Multiple Choice

A project has an initial cost of £38,000 and a four-year life.The company uses straight-line depreciation to a book value of zero over the life of the project.The projected net income from the
Project is £1,000, £1,200, £1,500, and £1,700 a year for the next four years, respectively.What is the
Average accounting return?

• A)3.55%
• B)4.13%
• C)4.28%
• D)7.11%
• E)14.21%

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A psychological concept referring to an individual's tendency to unconsciously protect themselves from unpleasant or threatening information, ideas, or perceptions.

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