A Project Has an Initial Cost of $32,000 and a 3-Year

question 54

Multiple Choice

A project has an initial cost of $32,000 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 $1,200,$2,300,and $1,800 a year for the next 3 years,respectively.What is the average accounting return?

• A)8.72 percent
• B)11.04 percent
• C)11.26 percent
• D)14.69 percent
• E)15.14 percent

---

Definitions:

Creative Energy

The force or drive behind the generation of new ideas, artistic expressions, or problem-solving techniques.

Bipolar Disorder

Bipolar disorder is a mental health condition characterized by significant mood swings, including bouts of depression and episodes of mania or hypomania.

Seasonal Affective Disorder

A type of depression that occurs at a specific time of year, often in winter, due to reduced levels of sunlight.

Socially Withdrawn

Refers to individuals who avoid social interactions and tend to spend excessive time alone, often due to fear or anxiety.