A 5-Year Project Requires $65,000 of Fixed Assets That Will

question 24

Multiple Choice

A 5-year project requires $65,000 of fixed assets that will be depreciated using straight-line depreciation to a zero book value over the life of the project.If the firm requires a minimum average accounting return of 11.65 percent,what must be the minimum average net income for the project to be accepted?

• A)$7,572.50
• B)$8,001.29
• C)$3,786.25
• D)$4,029.14
• E)$5,504.73

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