A Project Produces Annual Net Income of $10,500,$15,700,and $16,200 Over

question 46

Multiple Choice

A project produces annual net income of $10,500,$15,700,and $16,200 over its 3-year life and requires an initial investment in fixed assets of $210,000.The book value of these assets will be $140,007,$46,662,and $15,561 at the end of Years 1 to 3,respectively.What is the average accounting rate of return if the required discount rate is 14.5 percent?

• A)13.46%
• B)14.32%
• C)13.98%
• D)13.71%
• E)14.62%

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Definitions:

Milliliters

A unit of volume in the metric system, commonly used to measure liquids, equal to one thousandth of a liter.

Convert

To change something into a different form or properties, often referring to religious beliefs, units of measurement, or file formats.

Gabapentin

A medication primarily used to treat seizures and neuropathic pain, as well as other conditions as prescribed by a healthcare provider.

Mg

Short for milligram, a unit of mass in the metric system equal to one thousandth of a gram, often used in medication dosages and nutritional information.