A Project Has an Initial Cost of $40,000 and a Four-Year

question 110

Multiple Choice

A project has an initial cost of $40,000 and a four-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 $1,200,$2,200,$3,500,and $2,700 a year for the next four years,respectively.What is the average accounting return?

• A)3.55%
• B)4.13%
• C)4.28%
• D)7.11%
• E)12.00%

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Definitions:

Approval

The act of accepting or consenting to something, often given formally or officially.

Learner

An individual who is acquiring knowledge or skill through study, experience, or being taught.

Delivering Shock

An experimental method often used in psychological research to study obedience or the impact of punishments on behavior.

Experiment

A research method in which an investigator manipulates one or more factors (independent variables) to observe the effect on some behavior or mental process (the dependent variable). By random assignment of participants, the experimenter aims to control other relevant factors.