A project has an initial cost of $61,000 and a 5-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The projected net income from the project is $1,500, $1,600, $1,900, $2,100, and $2,200 a year for the next five years, respectively. What is the average accounting rate of return?
A) 6.10 %
B) 7.62 %
C) 7.97 %
D) 8.48 %
E) 9.42 %

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The Answer of A project has an initial cost of $61,000 and a 5-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The projected net income from the project is $1,500, $1,600, $1,900, $2,100, and $2,200 a year for the next five years, respectively. What is the average accounting rate of return?
A) 6.10 %
B) 7.62 %
C) 7.97 %
D) 8.48 %
E) 9.42 %

A Project Has an Initial Cost of $61,000 and a 5-Year