A Project Produces Annual Net Income of $9,500, $12,500, and $15,500

question 122

Multiple Choice

A project produces annual net income of $9,500, $12,500, and $15,500 over the three years of its life, respectively. The initial cost of the project is $260,400. 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 7 percent?

• A) 4.80 percent
• B) 7.32 percent
• C) 8.97 percent
• D) 9.60 percent
• E) 10.27 percent

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Definitions:

Sensory Experiences

Perceptions or interactions with the environment through the senses, including sight, sound, smell, taste, and touch.

Innate Concept

A cognitive theory suggesting that some knowledge or concepts are inherent and not acquired through experience.

Justice

The principle of fairness and the moral rightness of actions and laws within society, often associated with the distribution of resources and treatment of individuals.

Scientifically Appropriate Methods

These are techniques and procedures accepted by the scientific community as being accurate and replicable in research or experimentation.