What is the average accounting return

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A project has an initial cost of $70,000 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 $2,800, $4,300, $4,900, and $4,500 a year for the next four years, respectively. What is the average accounting return?

23.57 percent

11.79 percent

8.48 percent

42.86 percent

5.89 percent

Reference no: EM13947039

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