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

---

Definitions:

Ejaculation Phase

The stage in the male sexual response cycle during which semen is expelled from the body through the urethra.

Resolution Phase

The fourth phase of the sexual response cycle, during which the body gradually returns to its pre-aroused state.

Hypothalamus

A region of the brain responsible for the production of many of the body's essential hormones, thereby regulating temperature, hunger, thirst, fatigue, sleep, and circadian rhythms.

Blood Sugar

The concentration of glucose in the blood, which is a primary source of energy for the body's cells.