Initial cost-what is the average accounting return

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Reference no: EM13956236

A project has an initial cost of $35,000 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 $1,100, $1,300, $1,600, and $1,800 a year for the next four years, respectively. What is the average accounting return?

5.14 percent

4.14 percent

16.57 percent

8.29 percent

4.82 percent

Reference no: EM13956236

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