A project has an initial capital investment of $420,000, and a four-year life, at the end...

A project has an initial capital investment of $420,000, and a four-year life, at the end of which it will be fully depreciated to zero. The forecasted incremental net income after tax from the project is $14,200, $18,600, $16,300, and $20,000, respectively, for each of the next four years. What is the average accounting return (AAR) for this project?

A. 4.1%
B. 8.2%
C. 9.9%
D. 16.4%

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jeff jeffy answered 1 year ago

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