A project that will last for 9 years is expected to have equal annual cash flows of $101,800. If the required return is 8.9 percent, what maximum initial investment would make the project acceptable?

Mountain Frost is considering a new project with an initial cost of $220,000. The equipment will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The projected net income for each year is $20,300, $21,200, $24,600, and $17,200, respectively. What is the average accounting return?