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

Accounting

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?

46.73%
20.19%
9.90%
10.10%
5.05%

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166291

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