A Project Has an Initial Cost of $16,780 and a 3-Year

question 50

Multiple Choice

A project has an initial cost of $16,780 and a 3-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 $3,320,$3,080,and $1,700 for Years 1 to 3,respectively.What is the average accounting return?

• A)28.56%
• B)34.13%
• C)14.28%
• D)27.11%
• E)32.18%