MC algo 9-6 Calculating AAR Mountain Frost is considering a new project with an initial cost of $185,000. 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 $19,600, $20,500, $24,600, and $16,500, respectively. What is the average accounting return? Multiple Choice 20.12% 21.95% 16.46% 10.97% 23.51%

MC algo 9-6 Calculating AAR Mountain Frost is considering a new project with an initial cost of $185,000. 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 $19,600, $20,500, $24,600, and $16,500, respectively. What is the average accounting return? Multiple Choice 20.12% 21.95% 16.46% 10.97% 23.51%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 12PROB

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MC algo 9-6 Calculating AAR

Mountain Frost is considering a new project with an initial cost of $185,000. 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 $19,600, $20,500, $24,600, and $16,500, respectively. What is the average accounting return?

Multiple Choice

20.12%
21.95%
16.46%
10.97%
23.51%

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