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

question 25

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%

---

Definitions:

Live Donors

Individuals who donate a part of their living body, such as an organ or tissue, to be transplanted to another person in need.

National Registration

A system implemented by a government to officially register and keep track of its citizens or residents for purposes such as security, voting, or health care.

Voluntary Euthanasia

The act of intentionally ending a person's life to relieve them of suffering, with their consent.

The Netherlands

A country located in Northwestern Europe, known for its flat landscape, extensive waterways, windmills, tulips, and cycling routes.