What is the average accounting return

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Reference no: EM131512208

A project has an initial cost of $76,000 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 $3,100, $2,400, $2,800, and $4,500 a year for the next four years, respectively. What is the average accounting return?

A. 16.84 percent

B. 11.88 percent

C. 4.21 percent

D. 8.42 percent

E. 34.61 percent

Reference no: EM131512208

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