What is the average accounting return

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Reference no: EM131607797

A project has an initial cost of $56,000 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 $2,100, $1,900, $2,300, and $4,500 a year for the next four years, respectively. What is the average accounting return?

19.29 percent

9.64 percent

43.39 percent

10.37 percent

4.82 percent

Reference no: EM131607797

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