Problema project has an initial cost of 52000 and a, Ask an Expert

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Problem:

A project has an initial cost of $52,000 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 $1,900, $1,800, $2,200, and $4,600 a year for the next four years, respectively.

Required:

Question: What is the average accounting return?

10.10 percent
20.19 percent
5.05 percent
46.73 percent
9.90 percent

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162447

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